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  • FIRST POST
    • Kelly Garbula
    • By Kelly Garbula 14th Feb 18, 9:58 AM
    • 1Posts
    • 0Thanks
    Kelly Garbula
    Pensions for Self Employed
    • #1
    • 14th Feb 18, 9:58 AM
    Pensions for Self Employed 14th Feb 18 at 9:58 AM
    Where would be recommended to contact to set up a pension when self employed?
Page 1
    • LHW99
    • By LHW99 14th Feb 18, 10:21 AM
    • 1,139 Posts
    • 1,007 Thanks
    LHW99
    • #2
    • 14th Feb 18, 10:21 AM
    • #2
    • 14th Feb 18, 10:21 AM
    Depends on whether you want to manage it yourself (eg SIPP) or have a personal pension. How much you want to contribute. Whether you already have any existing DC pensions from earlier work that you could use.
    • greenglide
    • By greenglide 14th Feb 18, 2:36 PM
    • 3,007 Posts
    • 1,946 Thanks
    greenglide
    • #3
    • 14th Feb 18, 2:36 PM
    • #3
    • 14th Feb 18, 2:36 PM
    Are you really "self employed" (sole trader)?

    Many people come here claiming to be self employed when in fact they are employed by there own limited company. The suggestions put forward will be totally different if you have a limited company.
    • Terron
    • By Terron 14th Feb 18, 3:06 PM
    • 145 Posts
    • 168 Thanks
    Terron
    • #4
    • 14th Feb 18, 3:06 PM
    • #4
    • 14th Feb 18, 3:06 PM
    Many people come here claiming to be self employed when in fact they are employed by there own limited company. The suggestions put forward will be totally different if you have a limited company.
    Originally posted by greenglide
    Of course you can be both.
    • dunstonh
    • By dunstonh 14th Feb 18, 3:10 PM
    • 90,992 Posts
    • 57,995 Thanks
    dunstonh
    • #5
    • 14th Feb 18, 3:10 PM
    • #5
    • 14th Feb 18, 3:10 PM
    Of course you can be both.
    Originally posted by Terron
    Yes. It is possible for someone to operate on a self-employed basis and have a separate limited company for something else. Although it is quite rare.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Terron
    • By Terron 14th Feb 18, 3:30 PM
    • 145 Posts
    • 168 Thanks
    Terron
    • #6
    • 14th Feb 18, 3:30 PM
    • #6
    • 14th Feb 18, 3:30 PM
    Yes. It is possible for someone to operate on a self-employed basis and have a separate limited company for something else. Although it is quite rare.
    Originally posted by dunstonh
    Or for the same thing I let properties in my own name and also through a company (different properties), due to the change in tax. I have been researching whether I can pay a years worth of class2 NICs to max out my SP.
    • dunstonh
    • By dunstonh 14th Feb 18, 3:47 PM
    • 90,992 Posts
    • 57,995 Thanks
    dunstonh
    • #7
    • 14th Feb 18, 3:47 PM
    • #7
    • 14th Feb 18, 3:47 PM
    Or for the same thing I let properties in my own name and also through a company (different properties), due to the change in tax. I have been researching whether I can pay a years worth of class2 NICs to max out my SP.
    Originally posted by Terron
    Why not just take a salary of £680pm from the limited company? That gets you to the primary threshold without paying a penny NI but qualifies you for the SP.

    And yes, your scenario is a rare one but one that is likely to see more people fall foul of under the new rules.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Terron
    • By Terron 14th Feb 18, 10:20 PM
    • 145 Posts
    • 168 Thanks
    Terron
    • #8
    • 14th Feb 18, 10:20 PM
    • #8
    • 14th Feb 18, 10:20 PM
    Why not just take a salary of £680pm from the limited company? That gets you to the primary threshold without paying a penny NI but qualifies you for the SP.
    Originally posted by dunstonh
    The main reason is that the company is not making that much, yet.

    Maybe in the future I will pay myself a salary from the company, but currently paying a directors pension, a small dividend and repaying the money I loaned the company for deposits look more tax efficient.

    Class 2 NICs are so cheap that it seems worth paying them for the one year I need, if I can.
    Last edited by Terron; 14-02-2018 at 10:22 PM.
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