Ltd company pension for directors

thegentleway

Hi, I’m wondering how do you pay company profits into directors’ pensions? Do you just open a SIPP for each director and the company pays into it or is it more complicated? 

eskbanker

Depends who the 'you' is here - directors can set up their own SIPPs and the company can pay into them, which is likely to suit a one- or two-person company, but if it's a larger one with many directors (and potentially employees too) then it may wish to set up a dedicated plan with a pension company.

https://www.unbiased.co.uk/life/small-business/contributing-to-your-pension-via-a-limited-company-explained

thegentleway

eskbanker said:

Depends who the 'you' is here - directors can set up their own SIPPs and the company can pay into them, which is likely to suit a one- or two-person company, but if it's a larger one with many directors (and potentially employees too) then it may wish to set up a dedicated plan with a pension company.

https://www.unbiased.co.uk/life/small-business/contributing-to-your-pension-via-a-limited-company-explained

Thank you. The ‘you’ is just two directors so that’s great. 

dunstonh

Most retail pensions can accept employer contributions.    So, it's not complicated.    Just open an individual pension each and make employer contributions.