SIPP

dunstonh

dannybbb said:

ive always been self employed, probably mis labelled by me as in contributions from my own company

Can you confirm whether you are self employed or employed using the limited company structure of "own" company?

dannybbb

@dunstonh limited company

DoublePolaroid

With respect to drip-feeding versus lump sum investing, Pensioncraft did an article and video on the subject. In short and absent the ability of precognition, lump sum wins more often that not (time in the market…) but there are psychological factors which might favour drip-feeding. 

dunstonh

dannybbb said:

@dunstonh limited company

That means you are not self employed.     Which leads to the next question.  Are your pension contributions being made as employer contributions and not employee?

With respect to drip-feeding versus lump sum investing, Pensioncraft did an article and video on the subject. In short and absent the ability of precognition, lump sum wins more often that not (time in the market…) but there are psychological factors which might favour drip-feeding. 

Lots of research done by many different firms over the years and the figures with each tend to float around 70-85% of the time being best as paying in as soon as possible and not phasing.

There are usually differences in the percentages due to different time periods and different asset mixes but in every case, as soon as possible beats phasing.

dannybbb

@dunstonh thanks ok - it was more th talk of a crash / US recession  happened at the same time as i deposited the 10k

im a bit confused as to how much i can actually contribute now

dunstonh

im a bit confused as to how much i can actually contribute now

Assuming you had a pension in the 21/22 tax year, you can make employer contributions of £200,000 minus contributions that have been paid.  Budget and profit are the two main constraints on that.

dannybbb

my first contribution of 20k was last tax year in march so 23-24.
so far in 24-25 ive put in 20 with regular montky 1000 payment on direct debit

 profits this tax year will be around 70k and last year probably 50-60

Dazed_and_C0nfused

dannybbb said:

my first contribution of 20k was last tax year in march so 23-24.
so far in 24-25 ive put in 20 with regular montky 1000 payment on direct debit

 profits this tax year will be around 70k and last year probably 50-60

Do you really mean that?

Or do you mean your employer has made those contributions?

I think you need to get to grips with the fact that you, the director/employee, are a different entity to the limited company/employer.

Or are you ALSO self employed as well as being a director/employee 🤔.  By this I mean running a different business to the limited company, either as a sole trader or in a partnership.

Gary1984

When you make pension contributions, are they paid from the business bank account, or your personal bank account?

dunstonh

my first contribution of 20k was last tax year in march so 23-24.

If you have no other pensions and this was your first ever pension, then you are limited to £120,000 employer contributions minus contributions paid in 23/24 and 24/25.

profits this tax year will be around 70k and last year probably 50-60

So, an employer contribution to £70k would be fine.  Your accountant could probably allow for a bit more but your profit is a good guide.