SIPP contributions from company account

[blueb0y]

My company accounting period runs from 01/07 through to 30/06. I've just opened a SIPP in early June with £40k (the maximum amount) from my company account, thereby avoiding Corporation Tax on the investment amount. The question I have is: As it's now after 30/06 (and I'm therefore in a new accounting period) can I make another SIPP contribution immediately or do I have to wait until 06/04/2018 (new tax year)? Any assistance gratefully received

[AtW]

Welcome to CUK General.

You dirty corp tax avoider!!!

[chopper]

My company accounting period runs from 01/07 through to 30/06. I've just opened a SIPP in early June with £40k (the maximum amount) from my company account, thereby avoiding Corporation Tax on the investment amount. The question I have is: As it's now after 30/06 (and I'm therefore in a new accounting period) can I make another SIPP contribution immediately or do I have to wait until 06/04/2018 (new tax year)? Any assistance gratefully received

The contribution limits are based on your personal tax year (from 6th April), so you will need to wait until 06/04/18 to make a further contribution.

Aside from that, and I'm making assumptions about your investment decision, some say we're close to the top of the market and a correction is inevitable. You might have been better waiting - put the money into the SIPP but not invested into anything, and waiting for the crash.

Compare the October 2007 peak with the February 2009 low, where the FTSE dropped 1/3 of its value over 18 months. I'm not saying that kind of drop is coming, but I don't see big gains from here with a hard Brexit on the horizon.

(Could be wrong, I'm not a financial advisor)

[Lambert Simnel]

The contribution limits are based on your personal tax year (from 6th April), so you will need to wait until 06/04/18 to make a further contribution.

Agreed, with the caveat that you could make additional employer contributions now if you have some unused allowance from your previous personal tax years that you can roll forward. From the sound of the OP, it seems unlikely that a contribution of anything like £40k was made in either of the last two tax years.

[ASB]

Make sure it is acknowledged as a corporate contribution.

Otherwise it will be a personal one, they will claim 20% tax back and it all gets messy unwinding.

[TheFaQQer]

Agreed, with the caveat that you could make additional employer contributions now if you have some unused allowance from your previous personal tax years that you can roll forward. From the sound of the OP, it seems unlikely that a contribution of anything like £40k was made in either of the last two tax years.

If the scheme wasn't running then you can't make payments for previous years.

[Lambert Simnel]

If the scheme wasn't running then you can't make payments for previous years.

Are you sure? I agree that you need to have been a member of a registered pension scheme to roll forward unused allowance. I didn't think it needed to be the same registered pension scheme that you are now paying the contribution into. Happy to be told otherwise.

[TheFaQQer]

Are you sure? I agree that you need to have been a member of a registered pension scheme to roll forward unused allowance. I didn't think it needed to be the same registered pension scheme that you are now paying the contribution into. Happy to be told otherwise.

No, you're right - as long as you were in a pension scheme in those years, then you can carry them forward.

You can carry forward if you’re an active member currently building up pension benefits; a deferred member with paid-up pension benefits; a pensioner member, in receipt of pension benefits from your pension scheme, or a pension credit member, where you have a share of your ex-partner’s pension scheme.

[MarillionFan]

Yes, but you can only carry forward to match(or less) the salary you'll take in the present financial year.

[blueb0y]

No, you're right - as long as you were in a pension scheme in those years, then you can carry them forward.

You can carry forward if you’re an active member currently building up pension benefits; a deferred member with paid-up pension benefits; a pensioner member, in receipt of pension benefits from your pension scheme, or a pension credit member, where you have a share of your ex-partner’s pension scheme.

Many thanks to all. My first post and I'm delighted with the quick and helpful responses. Thanks again everybody.