Ltd Co Pension - what is my best course of action?

ErinGoBrath

mika_dm said:

You just need to be aware, that you cannot access your money from SIPP until you get to the age of 57.

She describes herself as early 50's so should still be able to access at age 55 before the increase to 57 in April 2028 (even if she was just 50 now).

fizio

I am in a similar position and have been 'advised' that while the full 40k is technically fine, it may be sensible to keep it lower to avoid any unnecessary attention. 

dunstonh

fizio said:

I am in a similar position and have been 'advised' that while the full 40k is technically fine, it may be sensible to keep it lower to avoid any unnecessary attention. 

Who advised you to do that?   
Are you a shareholding director?   if so, then there isn't an issue at all as long as the profit in the company is there.  
HMRC do not take an interest in shareholding directors using the pension allowance in full.   As I said already, its the spouses that they take an interest in where the spouse is not a shareholding director but company secretary or holding a "on paper" minor role.  It is those where you need to be careful.

MrsMossMarkOne

Thanks for the additional comments. I am the sole director and the company makes a profit each year that would enable me to make contributions under the £40K allowance. However, I have the available funds to make personal contributions too, to fully use my pension allowance. Can I make personal contributions up to the amount of my Directors salary for each year, so for example £8632 for 2019/2020? Would I get tax relief on this contribution?
Thank you in advance - your responses and contributions to the thread have really helped me take action. 

dunstonh

However, I have the available funds to make personal contributions too,

So, take less in dividends and use the personal funds to compensate.  Then make a higher company contribution.

Can I make personal contributions up to the amount of my Directors salary for each year, so for example £8632 for 2019/2020? 

You can but company contributions are better.   Company contributions save you 19% corporation tax and 7.5% dividend tax.   

Where personal contributions give you 20% relief after you have paid both the above.

Would I get tax relief on this contribution?

You get tax relief on personal contributions.