Pension contributions can be used to relieve LC19

[starstruck]

Do you know from which loan/income amount it the pension allowance starts to taper?

Have a read of this ... https://adviser.royallondon.com/tech...-high-incomes/

[shevlane]

LC19 - Pension contribution by your limited company

I've commented on pensions a few other times. It will be very fact specific whether it is a good idea to make personal pension contributions to offset the loan charge, especially if (i) you are close to the LTA, (ii) you are likely to be a 40% / 45% taxpayer in retirement, (iii) your limited company could make them.

I am curious here about what is meant by point (iii) - i.e. your limited company making pension contributions (to offset the 2019 Loan Charge).

I am in a position where I could make a large pension contribution (via carry forward) to offset LC19 but only if it could be paid for by my limited company.
(I have a large balance in the company, but a small amount personally).

If I had to draw it down via salary/dividends and then make the pension contribution, I believe it woudn't be worth it.

Can anyone offer some insight into how this works?

[starstruck]

I am curious here about what is meant by point (iii) - i.e. your limited company making pension contributions (to offset the 2019 Loan Charge).

I am in a position where I could make a large pension contribution (via carry forward) to offset LC19 but only if it could be paid for by my limited company.
(I have a large balance in the company, but a small amount personally).

If I had to draw it down via salary/dividends and then make the pension contribution, I believe it woudn't be worth it.

Can anyone offer some insight into how this works?

(iii) just means you need to consider that your Ltd could make pension contributions instead of you personally and you should weight up the pros/cons of the two options

But in your case you cannot make company contributions to offset loan charge. Your tax bands are only changed by personal contributions, company ones are paid gross anyway and so don't affect your personal tax paid.

All I can think of is you borrow the money to pay the pension personally and then save up over the years to repay that (e.g. re-mortgage, personal loan, loan from Ltd etc..).

[infossa]

Thanks to Iliketax, Starstruck and Loan ranger..Great contributions to the thread/ common public..

I went through all pages and still have some questions that needs some guidance from seniors here..

Shall i assume that if i need to settle via Pension route, All i need to wait till Apr 2019 Loan charge or until HMRC sends the notice to me ?

Do the previous loan payments received will be added into 2018-19 or 2019-20 ?

Is it better idea to stop taking salary and dividend from the LTD company from now on if the loans (100k ish) are to be included in the current financial year ?

Advance thanks for the suggestions..