Funding Pension from contractors ltd company - do I need an IFA?

splumley

I'm about to start my first contract, working through my own one man ltd company. I have an accountant but have been told I ought to speak to an IFA about tax planning.

Initially I want to make sure I am funding my pension in the most efficient way whilst making sure that I am contributing as much now as I did previously when my employers contributions were taken into account.

I have a personal / stakeholder pension already, it's just the means of the contributions and amount that I need to firm up.

If I pay myself the usual £6.5k per year plus £32k dividends, does this severely limit what I can pay in?

I know it is more tax efficient for my company to pay into the scheme, but do I really need to pay an IFA for this advice or is there somewhere else I can go for this information?

thanks

dunstonh

If I pay myself the usual £6.5k per year plus £32k dividends, does this severely limit what I can pay in?

No.

I know it is more tax efficient for my company to pay into the scheme, but do I really need to pay an IFA for this advice or is there somewhere else I can go for this information?

You dont need an IFA. Obviously not using an IFA means you may not get the best priced deals (IFAs are usually cheaper than going direct for example) and you will need to decide everything for yourself. However, if that is what you want then fine.

nrsql

I'm in the same position (except 10k salary) and wouldn't consider doing this without an IFA - if nothing else because he will keep up with legislation and let you know anything that affects you.
But are you sure you want to start a pension straight away? Unless you have a lot of savings I would build up some funds in the company first just in case you have a lean period, pension contributions are lost to you for many years. Dividends need to come out of profits which can be an issue if you run funds too low each year.