Pension and dividends

[bstar1]

1. Can I make personal and my ltd company contribution's to the same pension pot.


2. If I put the same as the gross salary amount of £10,600 into personal pension would I be able to take another £10,600 extra as dividend as not exceed the threshold.


3. I could then make another £29,400 contribution from the ltd company to bring the max pension allowance to £40,000.


Is this correct


Thanks

[northernladuk]

What did your accountant or IFA say?

[bstar1]

What did your accountant or IFA say?

still waiting to hear back

[northernladuk]

Cool, in the unlikely situation they don't answer your questions then please feel free to start a thread and we can have a look.

[Contreras]

1. Can I make personal and my ltd company contribution's to the same pension pot.

Yes.

2. If I put the same as the gross salary amount of £10,600 into personal pension would I be able to take another £10,600 extra as dividend as not exceed the threshold.

No. You could take an extra £11,925 net dividend, ((10600 / 80%) * 90%), assuming profits allow.

3. I could then make another £29,400 contribution from the ltd company to bring the max pension allowance to £40,000.

No. The company could make contributions of up to £26,750 gross, (40000 - (10600 / 80%)), assuming profits allow.

Is this correct

Don't take my word for it, I could be wrong too. Get advice from a tax professional.

[bstar1]

Yes.

No. You could take an extra £11,925 net dividend, ((10600 / 80%) * 90%), assuming profits allow.

No. The company could make contributions of up to £26,750 gross, (40000 - (10600 / 80%)), assuming profits allow.


Don't take my word for it, I could be wrong too. Get advice from a tax professional.

still waiting to hear back, but after 4 years contracting and paying extortionate coorptax each year I didn't realize how private pension reform has changed to such a great advantage to the jobbing ltd co contractor. Smell a rat with this government as once the funds are replenished they might change the tax laws "retrospectively" for pensions.

[Boo]

Cool, in the unlikely situation they don't answer your questions then please feel free to start a thread and we can have a look.

Or the OP can continue with this one, why not ? It's not like anyone needs your permission to post here.

Boo

[northernladuk]

Or the OP can continue with this one, why not ? It's not like anyone needs your permission to post here.

Boo

Cause he will get a better response starting his own thread rather than jumping on the back of other ones. Back in your box you.