I am the sole director/s'holder of a ltd co, and need to know if there is a limit to how much the company can contribute to a company pension scheme with me being the sole beneficiary. Anyone able to help?
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No limit any more."Experience hath shewn, that even under the best forms of government those entrusted with power have, in time, and by slow operations, perverted it into tyranny. "
Thomas Jefferson -
Do you mean that there are no restrictions at all? Or are the company contributions restricted to the amount that is contributed personally?Comment
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If you earned as PAYE you could put up to 100% of your earnings or up to £245,000 or there about per annum.
As you run the company that employs you it is different. You can pay your employee, as much as you think they are worth. Hence anything, however HM revenue and customs will smell a rat if your getting a whopping big pension and not earning all that much. What is best to do, is to make monthly payments and to put a lump sum in before the end of the tax year, as to the value have a discussion with your accountant.
Very very loose rule of thumb: half your age is the % of your annual earnings you should be putting into your pension."Wait, I still function!"Comment
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There is no limit on what you can contribute in theory, either personally or through the company. However, there is a annual limit on what would qualify for tax relief and there is a Lifetime Limit on what's in the pension fund. You can have a pension fund bigger than the Lifetime Limit (£1.6 m) but any surplus is HEAVILY taxed so there's no reason why you would want to do this.Originally posted by general enquiry
Likewise, you can contribute any amount on an annual basis but if you're not going to get tax relief why would you want to!Comment
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