Are you all using SIPPs now?

[hugebrain]

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?)

Yes, my company owns shares. It’s a bit of a mix which is better - with the company the money is a bit more accessible and you can use profits to pay yourself a salary for example.

[GJABS]

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)

Wouldn't be very tax efficient though, because if Tesco is paying staff employer pension contributions having made a loss, that money is coming from retained earnings from previous years which has already been taxed via corporation tax I think.

[hugebrain]

Wouldn't be very tax efficient though, because if Tesco is paying staff employer pension contributions having made a loss, that money is coming from retained earnings from previous years which has already been taxed via corporation tax I think.

Yes it would since the nice people at HMRC give you back the corporation tax if you make a loss (and bigger pensions mean bigger losses).

But don’t do it because pretty soon you may find yourself on minimum wage and paying £15,000 a month into a SIPP!