Small business pension advice

jusnbek

Hello,
I run a small business that both myself and my partner are employed by. 
I would some help us structure the business pension with personal pensions and discuss SIPP/ investments.
I am struggling to know where to start, and get lost in the mire of detail quickly. Can anyone recommend a source or a person that may be able to guide a little ?

Justin

TVAS

Not enough information has been provided.

Are you a limited company or a sole trader? If you are the former the company can pay an employer contribution gross which is treated as a business expense, if the latter you will have to pay net of the tax relief i.e. 80% 

How much do you want to contribute?

Free guide

https://www.hl.co.uk/free-guides/free-guide-to-sipps?

xylophone

Some general information from PensionBee here

https://www.pensionbee.com/pensions-explained/pension-contributions/contributing-to-your-pension-from-your-limited-company#:~:text=Your limited company can contribute,to 25% in corporation tax.


but you have a wide choice of pension providers.

Examples


https://moneytothemasses.com/saving-for-your-future/pensions/which-is-the-best-pension-if-youre-self-employed

https://www.vanguardinvestor.co.uk/what-we-offer/personal-pension/self-employed


https://www.aviva.co.uk/retirement/retirement-planning/self-employed-pension/


Or you can consult an IFA


https://adviserbook.co.uk/


Tick "confirmed independent" and such other specialisms required when the menu comes up.

dunstonh

I run a small business that both myself and my partner are employed by. 

That suggests it is a limited company.   If so, then virtually any individual pension available today will accept employer contributions from the limited company.

I would some help us structure the business pension with personal pensions and discuss SIPP/ investments.

With just the two of you, you would not look at company/occupational/group pensions.   You would use individual pensions with employer contributions.

jusnbek

Hello TVAS
Limited company. 
How much do i want to contribute - errr, I don't know.... i would like to pay in as much as is efficient.

Justin

SomeMadeUpName

jusnbek said:

Hello TVAS
Limited company. 
How much do i want to contribute - errr, I don't know.... i would like to pay in as much as is efficient.

Justin

£40k each then, every year, direct from The Ltd Co into the pension. **

Do you have £80k pa spare in the business  ???

**please note the answer may very well not be this simple, and anyone who listens to me deserves everything they get.

Marcon

jusnbek said:

Hello TVAS
Limited company. 
How much do i want to contribute - errr, I don't know.... i would like to pay in as much as is efficient.

Justin

If your company can support £40K each, then you'll get corporation tax on £80K as a trading expense. Doesn't matter what you and your partner are paid by way of salary - company contributions aren't limited by your earnings, provided you are a legitimate employee of the company (i.e. someone who actually works in the business).

dunstonh

Marcon said:

jusnbek said:

Hello TVAS
Limited company. 
How much do i want to contribute - errr, I don't know.... i would like to pay in as much as is efficient.

Justin

If your company can support £40K each, then you'll get corporation tax on £80K as a trading expense. Doesn't matter what you and your partner are paid by way of salary - company contributions aren't limited by your earnings, provided you are a legitimate employee of the company (i.e. someone who actually works in the business).

I am just going to tweak what you are saying slightly to add a caveat.
Shareholding directors who are beneficial owners (over 25% share) can do the max without concern from HMRC.  However, a spouse who is not a shareholder and holding a minor officer role (like a company secretary) or a minor employment role (like a cleaner) could have issues with HMRC as they expect the remuneration package to be in line with their position in the company.

Nowadays, most have the spouse as a shareholding director but in the past it was common for the spouse to be a company secretary.