Are you all using SIPPs now?

[PerfectStorm]

Your company can pay into it.

Just make sure you mark it as an employer contribution.

On whose side? The pensions company? My accounts/freeagent?

[56samba]

On whose side? The pensions company? My accounts/freeagent?

The Pension company, so they dont try and claim the tax back as if it were an employee contrib.

[d000hg]

Your company can pay into it.

Just make sure you mark it as an employer contribution.

And IIRC there is no annual limit at all on what your company can contribute (so the date is not a factor) as long as you don't go into a loss. But for personal pensions you can roll over 3 (4?) years contributions so if you haven't been making contributions before, again the 5th is probably not an issue.

[GJABS]

Happy new tax year everyone

Yes I know the tax setup but I was curious once the funds are in your SIPP/ISA do you use different investment strategies for the two? I was considering that I might effectively mirror them if I went with a SIPP so e.g if the ISA owns 23% of X, 34% of Y and 43% of Z, so does the SIPP - as I buy or sell in the ISA I mirror the same % holdings in the SIPP so I view it as one portfolio split across two different containers.

I don't treat them any differently from each other, with one exception: I have lower-risk lower-return investments in my pension, compared with my ISA, because I want to reduce the risk of it going above the £1 million limit after which you are taxed very heavily on it. Although the government has recently removed this extra tax, Labour say they are going to re-instate it if they get into power. There is no benefit to taking this risk. So if I am lucky enough to get my pension close to £1M in due course I am likely to sell everything and sit on cash instead.

[hugebrain]

I got the feeling a lot of people have gone the SIPP route these days so just wondered how you handle it.

TIA.

Don’t make any contributions from your company. Keeping the money in the company is almost the same as having it in a SIPP anyway (you defer the tax until you take it out).

If you ever have to endure the horrors of an inside IR35 contract you will need your pension allowances. If I work for the full year (inside) I will pop 180,000 into my SIPP which cuts my tax rate from 50% to 20% and neatly sidesteps all that higher rate tax business.

[sadkingbilly]

If you ever have to endure the horrors of an inside IR35 contract you will need your pension allowances. If I work for the full year (inside) I will pop 180,000 into my SIPP which cuts my tax rate from 50% to 20% and neatly sidesteps all that higher rate tax business.

yeh, 'course you will

[WTFH]

yeh, 'course you will

Most people on here put up figures in GBP, while HB uses ZWD

[sadkingbilly]

Most people on here put up figures in GBP, while HB uses ZWD

KPW more like

[d000hg]

Don’t make any contributions from your company. Keeping the money in the company is almost the same as having it in a SIPP anyway (you defer the tax until you take it out).

Well in a SIPP you are investing it rather than it sitting in a business bank account at 1%... unless your company owns shares (presumably it can?)

[hugebrain]

And IIRC there is no annual limit at all on what your company can contribute (so the date is not a factor) as long as you don't go into a loss.

I’m pretty sure you can go into a loss. Tesco don’t stop paying their staff pensions if they make a loss one year - so it should be the same for Yourco. I think there’s something vague about it being reasonable or something.

(but as I said before it’s not a great idea pay yourself a pension from your company anymore)