Limited company director pension contributions together with Work place pension?

bharathmed

Hi
As a limited company director can you contribute to SIPP from business directly, whilst already contributing to primary work place pension. If so, does the annual allowance include all of these contributions together.  Thankyou for advice.

HappyHarry

Yes.

e.g. If the director earned £35000 through PAYE they could contribute £35000 personally to a pension and the limited company could contribute another £25000 (less any contributions made by the employing company)  to use up the remaining annual allowance. If carry forward is available then the limited company could contribute more. 

bharathmed

Thank you. If I understand  correctly, you can contribute 60K from work place pension and personal SIPP AND 60 K from limited company (side hustle). Or all of them together have to be max 60K To meet AA limit. BW.

HappyHarry

£60k total

bharathmed

Thankyou for a prompt response. Much appreciated.

Grumpy_chap

bharathmed said:

60 K from limited company (side hustle). 

That's an impressive "side hustle"

To be clear, the Annual Allowance is £60k maximum in total from all sources and is the GROSS contribution.
(You may have carry forward that allows a higher contribution to be made.)
Contributions from all sources includes employee and employer contributions from your work place plus the contributions from your separate Ltd Co.

Your contribution to the workplace pension is restricted to your total earned income as personal contribution.  Employer contributions are not included within this cap.