I'd be tempted to pay a lot of it into pension fund
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Closing my ltd company: help me take away the pain
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Originally posted by jamesbrown View PostYes, you should probably take the hit and get over yourself .
You're unlikely to do any better than 10%. If you're working through an umbrella, you're already maxing out your pension and salary/dividends probably aren't a good option either. If you have no clear use for the company in the next year or two, it is costing you to maintain it, with little upside.
Oh, and BADR won't be around forever. In fact, perhaps not beyond next April (we've been speculating for years, of course, but Labour has explicitly targeted it in the recent past).
Moneyboxing was another term thrown around in buckets at the time. Again, worried me as that was part of my retirement planning, but again the bark was worse than the bite.
But yes, OP should just take the very beneficial 10% hit and move on. It's one of the most important aspects of running a business, having the choice to use BADR at the end.Comment
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Originally posted by CoolCat View PostI'd be tempted to pay a lot of it into pension fund
But forcing your LTD company into a loss by paying excessive pension payments is a no-no.
It's the deliberate act of paying into pension when there isn't any current operating profit that's the issue.
The fact that it's retained profit makes no odds.
That's according to my accountant.See You Next TuesdayComment
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Originally posted by Lance View Post
I though that.
But forcing your LTD company into a loss by paying excessive pension payments is a no-no.
It's the deliberate act of paying into pension when there isn't any current operating profit that's the issue.
The fact that it's retained profit makes no odds.
That's according to my accountant.
There are a whole host of BIM's on examples of what is trade and allowable or excessive and not but they can get very confusing.
But whatever.. WLS.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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I think you're very unlikely to have an employer pension contribution not meet the wholly and exclusively test, regardless of how large it is. Large payments are routine with the carry forward rules.
Making payments that exceed profits in a given year is another matter, though...Comment
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