- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Reply to: Company pension contributions
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Company pension contributions"
Collapse
-
Yes, I have calculated that in ~8 years time I will be able to pay in (what will be) my final 2 years turnover as a contractor into my SIPP and retire, as I will have a deferred pension payable that year and will have other savings to live off anyway for those 2 years.
-
I understand there is no limit on pension contributions these days - used to be capped at a percentage of income. So theoretically you can pay it all out as pension and gain c-tax deduction and not sustain any income tax for it.
On retirement you can draw 25% as a cash lump sum and take income from the rest. This income is I think assessed as income for tax purposes, or the re-invested growth of the pension is taxed, I can't remember which.
I am not qualified to give advice - above is purely hearsay.
Leave a comment:
-
Originally posted by chrisl View PostA one man Ltd company paying, small salary and high dividends totaling £50k per annum, would you see any problem in paying the whole £50k to a company pension fund?
This would be done because the wife/husband would be paying for the contractors normal life style so they money earned through the Ltd company is not actually needed for anything.
Would it look strainge to HMRC paying 100% of earnings to the company pension?
Its difficult to see the benefit of making payments into a pension pot, to forgo a salary & dividend..... Surely it is best to do all three in a workable way ?
Leave a comment:
-
Worth a search, there are varying opinions.
My view is that you are probably OK, but you need to be carefult - it has to be for the purposes of trade. One way of doing this may be by giving yourself a 50k salary and then doing a 50k salary sacrifice. However there are precedents which could make it not for the purposes of trade.
Leave a comment:
-
Company pension contributions
A one man Ltd company paying, small salary and high dividends totaling £50k per annum, would you see any problem in paying the whole £50k to a company pension fund?
This would be done because the wife/husband would be paying for the contractors normal life style so they money earned through the Ltd company is not actually needed for anything.
Would it look strainge to HMRC paying 100% of earnings to the company pension?Tags: None
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: