Pension limits for personal and Ltd company contributions

RemotecUK

In the tax year 2024-2025 I have put £38,000 of my PAYE income into my SIPP.

I am also in a position to put in some cash from an Ltd company where I am a director.

Is the total limit in this case £48,000 - that is £38,000 personal and £10,000 from the Ltd?

Or can the Ltd make up the balance to £60,000 which would be an additional £22,000?

Thanks in advance.

Dazed_and_C0nfused

RemotecUK said:

In the tax year 2024-2025 I have put £38,000 of my PAYE income into my SIPP.

I am also in a position to put in some cash from an Ltd company where I am a director.

Is the total limit in this case £48,000 - that is £38,000 personal and £10,0009 from the Ltd?

Or can the Ltd make up the balance to £60,000 which would be an additional £22,000?

Thanks in advance.

Have you paid £38,000 or just £30,400?

Where are you getting £48,000 from as a relevant figure?

Sam_666

Ltd can contribute max £60k in year, regardless of employee earnings.
In this case. 60k-38k=22k is what can be added from ltd.
In this calculation, 38k include tax rebate.

dunstonh

Is the total limit in this case £48,000 - that is £38,000 personal and £10,0009 from the Ltd?

No.
Limited company can use the remainder of the £60k annual allowance and use carry forward from the previous three years.   However, you would probably only want to do that if you have the profit to get corporation tax relief.

RemotecUK

Dazed_and_C0nfused said:

RemotecUK said:

In the tax year 2024-2025 I have put £38,000 of my PAYE income into my SIPP.

I am also in a position to put in some cash from an Ltd company where I am a director.

Is the total limit in this case £48,000 - that is £38,000 personal and £10,0009 from the Ltd?

Or can the Ltd make up the balance to £60,000 which would be an additional £22,000?

Thanks in advance.

Have you paid £38,000 or just £30,400?

Where are you getting £48,000 from as a relevant figure?

I have transferred from my bank account to my SIPP provider £38,000.

The £48,000 figure, is if I have understood correctly, the max you can put in as when the SIPP provider grosses that up, it gets you to the £60,000 limit.

Dazed_and_C0nfused

RemotecUK said:

Dazed_and_C0nfused said:

RemotecUK said:

In the tax year 2024-2025 I have put £38,000 of my PAYE income into my SIPP.

I am also in a position to put in some cash from an Ltd company where I am a director.

Is the total limit in this case £48,000 - that is £38,000 personal and £10,0009 from the Ltd?

Or can the Ltd make up the balance to £60,000 which would be an additional £22,000?

Thanks in advance.

Have you paid £38,000 or just £30,400?

Where are you getting £48,000 from as a relevant figure?

I have transferred from my bank account to my SIPP provider £38,000.

The £48,000 figure, is if I have understood correctly, the max you can put in as when the SIPP provider grosses that up, it gets you to the £60,000 limit.

You were talking about personal and employer contributions in your original post though.

There is no pension tax relief added to employer contributions.

If you have personally paid £38,000 then that is a gross contribution of £47,500 with the basic rate tax relief added.

Presumably you have actually earned £47,500 in the current tax year?  Dividends are not earnings as far as pension contributions are concerned.

RemotecUK

Yes @Dazed_and_C0nfused, this is exactly correct, and yes I have earned £47,500.

So with the gross contribution being £47,500, how much could my LTD now add this tax year?

Dazed_and_C0nfused

RemotecUK said:

Yes @Dazed_and_C0nfused, this is exactly correct, and yes I have earned £47,500.

So with the gross contribution being £47,500, how much could my LTD now add this tax year?

In theory £152,500.

But that assumes you were a member of a pension scheme back to 2021-22 and have maximum unused annual allowance available.

Marcon

RemotecUK said:

Yes @Dazed_and_C0nfused, this is exactly correct, and yes I have earned £47,500.

So with the gross contribution being £47,500, how much could my LTD now add this tax year?

Any scope for carry forward before 21/22 drops out of the reckoning? https://www.ajbell.co.uk/sites/default/files/useful-forms/AJBYI_SIPP_carry_forward_guide.pdf

RemotecUK

Dazed_and_C0nfused said:

RemotecUK said:

Yes @Dazed_and_C0nfused, this is exactly correct, and yes I have earned £47,500.

So with the gross contribution being £47,500, how much could my LTD now add this tax year?

In theory £152,500.

But that assumes you were a member of a pension scheme back to 2021-22 and have maximum unused annual allowance available.

All allowances have been used from previous years.

With the current grossed up amount at  £47,500 - can the Ltd top that up to £60,000 by adding £12,500?

RemotecUK

dunstonh said:

Is the total limit in this case £48,000 - that is £38,000 personal and £10,0009 from the Ltd?

No.
Limited company can use the remainder of the £60k annual allowance and use carry forward from the previous three years.   However, you would probably only want to do that if you have the profit to get corporation tax relief.

I'm still not sure if the LTD can add either:

£60,000 - £38,000 = £22,000 (where the £38k is taxed income I have paid in to my personal SIPP).

or

£60,000 - £47,500 = £12,500 (where the £47.5k is the grossed up amount from the £38k I have added from my taxed income into my personal SIPP).

If anyone could point me at any rules or regulations thar would also be useful as I have struggled to work this out.