Simple Director's Pension Scheme

sullyc

I do a little work through my own company of which I am a director. I am also the only employee. I take no salary as there are no benefits of doing so, as far as I am aware, given I am an employee of another company (my main job).

To maximise tax efficiency I understand I can set up and pay into a company pensions scheme - I'll be paying way under the £40k I understand is allowable - about a quarter of that, in fact.

Recommendations of suitable pension schemes? Minimal hassle. Minimal risk. I primarily just want to save on that unnecessary corporation tax.

Just started googling around and pensionbee was one of the 1st I hit. It's a shame that their 'Future World' plan is so high risk as I'm all for the concept. How might other options compare?

Thanks.

dunstonh

To maximise tax efficiency I understand I can set up and pay into a company pensions scheme

It would be inefficient to set up an occupational pension scheme with just you.

Recommendations of suitable pension schemes?

Any individual pension will take employer contributions.

Minimal risk.

What risks are you referring to? Investment risk, shortfall risk, inflation risk......
Pensions themselves do not have risk. It is where and how you invest that has investment risk.

gdrforest

I just have a SIPP with Hargreaves Lansdown. You can set up Personal and company payments into that. You can choose the underlying investments to match the level of risk and fess you want to accept.

Brynsam

sullyc wrote: »

I do a little work through my own company of which I am a director. I am also the only employee. I take no salary as there are no benefits of doing so, as far as I am aware, given I am an employee of another company (my main job).

To maximise tax efficiency I understand I can set up and pay into a company pensions scheme - I'll be paying way under the £40k I understand is allowable - about a quarter of that, in fact.

Try https://www.moneysavingexpert.com/savings/cheap-sipps/

Taking a salary from your company would also reduce corporation tax (although obviously there would be an income tax hit for you, given you are earning elsewhere and will doubtless be over the personal allowance).

Prism

I use AJBell Youinvest for my company payments. The money comes out of my business account on the first of the month and its invested using a regular investment on the 10th. You can also just make ad-hoc payments as needed.

You will also need to chose a fund to invest in. I would look at one of the lower risk multi asset funds from AJBell, HSBC Global Strategy or Vanguard LifeStrategy

dharm999

sullyc wrote: »

I do a little work through my own company of which I am a director. I am also the only employee. I take no salary as there are no benefits of doing so, as far as I am aware, given I am an employee of another company (my main job).

To maximise tax efficiency I understand I can set up and pay into a company pensions scheme - I'll be paying way under the £40k I understand is allowable - about a quarter of that, in fact.

Recommendations of suitable pension schemes? Minimal hassle. Minimal risk. I primarily just want to save on that unnecessary corporation tax.

Just started googling around and pensionbee was one of the 1st I hit. It's a shame that their 'Future World' plan is so high risk as I'm all for the concept. How might other options compare?

Thanks.

Isn't the company meant to offer by law, an auto enrolment pension arrangement? I thought it applied to all companies now?

I'm not sure if the law allows the company to pay into a private pension for you so that it meets its auto enrolment obligations - it would be odd that it wouldn't but the law can be odd!

Prism

dharm999 wrote: »

Isn't the company meant to offer by law, an auto enrolment pension arrangement? I thought it applied to all companies now?

I'm not sure if the law allows the company to pay into a private pension for you so that it meets its auto enrolment obligations - it would be odd that it wouldn't but the law can be odd!

Only if you are an employer. Otherwise you fill out a quick form and you are exempt

sullyc

dunstonh wrote: »

It would be inefficient to set up an occupational pension scheme with just you.



Any individual pension will take employer contributions.



What risks are you referring to? Investment risk, shortfall risk, inflation risk......
Pensions themselves do not have risk. It is where and how you invest that has investment risk.

Yes, investment risk. So 'individual pension' of low to medium investment risk with the main criteria being ease of initial setup with minimal decision making required, minimal fees and that I can basically then just forget about it apart from plonking a lump sum in annually for the next 10-15 years.

Ta.

AnotherJoe

sullyc wrote: »

Yes, investment risk. So 'individual pension' of low to medium investment risk with the main criteria being ease of initial setup with minimal decision making required, minimal fees and that I can basically then just forget about it apart from plonking a lump sum in annually for the next 10-15 years.

Ta.

So the only decision to make is pick a fund or similar investment that you deem meets your risk profile (note that by choosing too low risk hen over 15 years you are increasing the risk of poor returns, but whatever, your choice ) and then from that point on all the lump sums and additional tax contributions get put in that investment, job done no more decisions.

atush

Pick a multi asset fund with 40% equities, should be low risk and low cost.