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Pay SIPP contribution from Ltd company dividend
Comments
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If paying the SIPP contribution from retained profit can offset the previous company tax year CT tax at 20% that is ideal.
The company has made no profit so far this year so there would be no CT to offset.
If I took the dividend personally, I would have to pay dividend tax on it. I would need to pay higher rate 33.75% tax on everything above £1,000.
From there I could put it into a SIPP and get back 20% relief at source, and as a higher rate tax payer claim back another 20% through SA.
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That's what you need to check...RemotecUK said:If paying the SIPP contribution from retained profit can offset the previous company tax year CT tax at 20% that is ideal.
The company has made no profit so far this year so there would be no CT to offset.
If I took the dividend personally, I would have to pay dividend tax on it. I would need to pay higher rate 33.75% tax on everything above £1,000.
From there I could put it into a SIPP and get back 20% relief at source, and as a higher rate tax payer claim back another 20% through SA.Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0
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