Should I continue my private pensions now I have a Ltd?

[ashleymoran]

I have two private pensions started while I was in permanent employment, a Stakeholder with Lloyds TSB and a Co-op personal pension. The contributions total about £100.

As I understand it, I can still pay into them, and receive 22% tax relief on contributions up to £3600.

What is my best strategy, to continue paying into these, or to freeze them and open a pension fund through my company? Which is more tax-efficient overall?

[LordF]

Best to open one via the Ltd company and transfer all existing funds into that one. That is what I have done with Scottish Widows, paying £700/month and current fund value of £140k.

[Lewis]

Best to open one via the Ltd company and transfer all existing funds into that one. That is what I have done with Scottish Widows, paying £700/month and current fund value of £140k.

Actually you are better off keeping it personal (more tax efficient). This has been done many times before. Search for old threads. So OP the answer is yes.

[moorfield]

Best to open one via the Ltd company and transfer all existing funds into that one. That is what I have done with Scottish Widows, paying £700/month and current fund value of £140k.

Open a SIPP - Hargreaves Landsdown seems to be most popular on here and start contributions direct from yourltdco.

... but if you were/are contracted out of serps, you won't be able to transfer the protected rights money into a SIPP, so leave the old one as is until that rule changes.

[SueEllen]

Your choices depending on how you view investment decisions. You can either:
1. Repension or transfer doing it yourself, or paying an IFA upfront so they don't take the money off your pension pot - http://www.moneysavingexpert.com/sav...igger-pensions
2. Use a SIPP - http://www.moneysavingexpert.com/savings/cheap-sipps

There a few things you need to check if you are transfering personal pensions as some personal pensions can't be transferred so you need to read the small print in your pension documents.

Have fun reading through all the information and previous pension threads.

[ashleymoran]

Actually you are better off keeping it personal (more tax efficient). This has been done many times before. Search for old threads. So OP the answer is yes.

Sorry for the noise, I did search the archives but didn't see an answer to my question.

I did wonder if it was more tax efficient to use a personal pension, seeing as the small company corporation tax rate is 20%, and the relief on personal pensions is 22%.

[ashleymoran]

Your choices depending on how you view investment decisions. You can either:
1. Repension or transfer doing it yourself, or paying an IFA upfront so they don't take the money off your pension pot - http://www.moneysavingexpert.com/sav...igger-pensions
2. Use a SIPP - http://www.moneysavingexpert.com/savings/cheap-sipps

There a few things you need to check if you are transfering personal pensions as some personal pensions can't be transferred so you need to read the small print in your pension documents.

Have fun reading through all the information and previous pension threads.

Thanks for these links, they were very informative. I've been on MSE.com lately for car insurance but never thought to look at the pension stuff. Now I am thinking I should read the whole site! I got his book too as a present, and never bothered to open it, shame on me...

[FarmerPalmer]

I just pay into my previously held stakeholder pensions from my limited company.

[IR35 Avoider]

What is my best strategy, to continue paying into these, or to freeze them and open a pension fund through my company? Which is more tax-efficient overall?

You should not have a "company" pension, the advantage of these (that you can contribute larger amounts) has been nullified since A-day. Personal or stakeholder pensions can take the same amounts and are much cheaper and simpler to run.

You should be able to make employer contributions to either of your existing personal pensions. In addition to tax relief you will be saving on NI as well, if the contributions are replacing salary.

Rather than make monthly regular contributions, I make single contributions once a quarter. With some pensions the charges are lower for contributions made in this way. Another advantage is that it's only at the end of the quarter that I know how much I've earned and therefore how much I want to contribute, to offset any IR35 deemed-payment liability.

You probably need to decide on one personal or stakeholder that you prefer (which might not be one of the existing ones) and then transfer all your existing holdings into it, if there's no penalty for doing so.

[robnjc]

ask an IFA