Saving/Retirement etc

[northernladuk]

Everyone on here always bangs on about the difference between company money and personal money. This would just be an attempt to combine the two and get an advantage out of it.

Putting it in to trust is a whole different ball game. I don't profess to know anything about trush but it puts a legal wrapper around it which changes it's status hence being able to do this. Again... No one has done it so we don't know the details OR the implemenation. It would be just (more) hypotheical discussion.

[ASB]

You are getting there



No one has ever done it, it has just been proposed by THEPUMA so not tested. Like any scheme like this HMRC will probably take a dim opinion and try and fight it and lose. You are guessing about the BIK now.

It has been done. It has not been challenged (obviously different from being accepted).

[ASB]

Everyone on here always bangs on about the difference between company money and personal money. This would just be an attempt to combine the two and get an advantage out of it.

That is a view you could take.

There is, I believe, absolutely nothing in law which states that company assets need to be held in the name of the company. There are, however, some accounting issues related to how they are shown on the balance sheet. A simple example of this might be a company car. Quite a lot of these are registered in the name of the keeper rather than the company.

Consider, for example, somebody with bad credit and is refused a company bank account. Does this mean they can't trade ? Of course not. They could quite happily use a new personal bank account for the company. It would be best obviously to keep it entirely separate in an account of it's own. They can account for any interest received to the company.

I fully see your point about "combining the two". But there is no point at which I have suggested that. In a separate account it is not combined. It is always available to the company. It is obviously identifiable. It has not been lent.

The individual does not receive any consideration - this would certainly be a benefit if it was not accounted for back to the company. The individual happens to receive an indirect benefit that is all. I do not believe there is any mechanism to tax that.

Clearly this is not something for the risk averse, after all if you don't try it it can't go wrong. Personally I am not particularly risk averse and if it was appropriate for me I would do it. I accept it may lead to a long and interesting chat with the inspector. But I've had loads of them. Some of these haven't turned out as well as I'd hoped - I think my company tractor and lawn tractor probably fell into the piss take category but all it cost me was tax on 10% of the depreciating value for assets placed at my disposal.

[Old Greg]

If you are a bit short of work ASB you can come round and do my lawn!!

Maybe he could do your googling of other posters' questions, and then you could do your own lawn.

[northernladuk]

Maybe he could do your googling of other posters' questions, and then you could do your own lawn.

What? and not be around to offer constructive and polite advice in the helpful tone I am famous for to our new posters (and a few of the older ones!)?? You have got be 'avin a larf!!!

[Old Greg]

What? and not be around to offer constructive and polite advice in the helpful tone I am famous for to our new posters (and a few of the older ones!)?? You have got be 'avin a larf!!!

Fair enough. Those threads won't google themselves.

[northernladuk]

Fair enough. Those threads won't google themselves.

Yes bwana, i will get right on it bwana, no problems bwana......

[IR35 Avoider]

1. If I pay into a SIPP personally, the max I can put in each year = the salary I pay myself? If company does it the max is £50K? (and I can use previous 3 years allowances too).

You can personally put in about 3.6K even if you have no salary, above that you are limited by salary and the 50K limit. From the company, only the 50K limit applies.
Contribution Levels and Tax Relief - The Pensions Advisory Service (TPAS)

2. If I transfer in some existing frozen pensions, does this count towards the £50K year max?

No. A transfer is not a contribution. Limits only apply to contributions.

3. Am I right in saying that you can start taking money out of SIPP as soon as you reach 55? Regardless of your work circumstances?

Yes

[IR35 Avoider]

Money used to pay off mortgage comes from divis that have been taxed at 20% whereas money going into SIPP is tax free (saving the 20%)?

Assuming money going into the SIPP is taxed at basic rate when it comes out, it will be taxed at 15% on average. (A quarter tax-free and the rest taxed at 20%.)

[escapeUK]

To save you looking for THEPUMA posts here is one. You might also like to review the whole thread it's in.

http://forums.contractoruk.com/accou...ml#post1192134

I tried to contact him for more details and never got a reply