Releasing cash from my pension

Nickfletch70

I have a private pension worth about £45 and have gone self employed ( sole trader) last year

I need about £10k to grow my business but can't get finance

I know there are dodgy companies out there that will sort pension liberation etc but I will get hit with 55% HMRC charge as they are non allowable payments

One company is offering me 25% commission by transferring my pension into a 5 yr bond

I am prepared to lose my pension in its entirety - I know this seems short sighted but my business is growing fast

I can't get finance for my business

Does anyone know if this commission is also deemed as a non allowable expense please

Many thanks

le_loup

Nothing to do with savings.
Try the PENSIONS board just below this one.
They will tell you why you can't.

dunstonh

I know there are dodgy companies out there that will sort pension liberation etc but I will get hit with 55% HMRC charge as they are non allowable payments

As well as it being unlawful, a number also erode your pension with staggering charges.

One company is offering me 25% commission by transferring my pension into a 5 yr bond

Commission has been banned (since Jan 2013). So, that sounds like a scam. HMRC would almost certainly see that as an unauthorised payment.

I am prepared to lose my pension in its entirety - I know this seems short sighted but my business is growing fast

It is short sighted. You dont throw away £45k to get £10k.

gadgetmind

Nickfletch70 wrote: »

I need about £10k to grow my business but can't get finance

You really need to forget the pension.

Have you been to any business angel type events? Yes, you have to give up equity, but you can get both investment and a partner with decades of relevant experience.

If you're prepared to do the paperwork (it's a slog and doesn't ease off!) then you can also go the Seed Enterprise Investment Scheme route, which makes investing *very* tax efficient for many of those looking at this type of opportunity.

Of course, you'll need a very compelling concept (avoid "me too!") and a business plan that shows you know what you're doing.

Apologies if this is teaching you to suck eggs.

BTW, I mostly funded my first business (age 21!) by borrowing from the bank against the initial orders placed by customers. Without this borrowing, I couldn't have built the finished product, nor - being honest - could I have afforded to complete properly designing it!