Sipp Pension

metro1111

Hi all, 

Thank you in advance for any help received.

I am looking to open a sipp pension and make payments into it from my limited company and i am the sole director.

I have not opened a pension before, but i am looking to see if there is a way i can use my allowance from last year as well as this year.

So pay £60,000 into my pension for this year and also £60,000 from last year allowance brought forward = £120,000 to be the allowance for this year and last year.

After speaking to my chartered via email he said it is possible to forward last tax years allowance even thought I was not registered with a pension scheme last year.

The issue i have is i am only a few days away from my companies year tax end an need to do this now and my accountant is now on holiday.

Is this possible, and if so how please.

Thank you for reading.

metro1111

After speaking to my chartered ACCOUNTANT 

El_Torro

Paying £60k of employer contributions now should be relatively straightforward. Just open an account with the platform provider you want to use and link your Limited Company's bank account to make the payment. 

It is my understanding that you can't use carry forward if you've never had a pension before. Your accountant probably knows better than me though. Hopefully someone can confirm.

metro1111

Thank you very much for your reply and time.

To be honest i wasn't aware I could pay 60k into a sipp pension and save on corporation tax and dividends tax, otherwise I would have done this every year :-( for years.

Just reaching out here as i'm not sure i will here back to time from my chartered accountant as he is now away.

Marcon

El_Torro said:

Paying £60k of employer contributions now should be relatively straightforward. Just open an account with the platform provider you want to use and link your Limited Company's bank account to make the payment. 

It is my understanding that you can't use carry forward if you've never had a pension before. Your accountant probably knows better than me though. Hopefully someone can confirm.

Correct - unless you already have some sort of UK registered pension in existence for the tax year(s) where you wish to use carry forward, you can't use it. Note that it can be 'any' pension, not necessarily the one you have yet to set up - so if OP has ever been in employment and has a deferred pension from then, that'll do the trick.

HappyHarry

It may well be possible for you to carry forward an unused pension allowance and make a pension contribution of £120,000 from your limited company.

To do this, you must have had a pension scheme, of some kind, in place that year.

So, do you have any pension schemes at all? Even a stakeholder plan or an old employer scheme with £50 in from 20 years’ ago would count.

metro1111

thank you very much for the replies and time.

I am not aware of ever having a pension being started before, I was employed for about 10 years a p.a.y.e person 20 years ago but never new of a pension started for me and I did not start one.

DRS1

You don't have to have started a pension you just have to have belonged to one.  What have you got from your employment?

metro1111

I have been self employed as a director for the last 20 years, before that I was self employed and before that paye.

But I don't ever remember joining or starting a pension scheme.

If I do hear back in time from my accountant I will post back here what he said.

Marcon

metro1111 said:

After speaking to my chartered via email he said it is possible to forward last tax years allowance even thought I was not registered with a pension scheme last year.

They are wrong on that point IF that's what they said - but I wonder if the email exchange you had, when read in full and in context, meant that the reference was to not being registered (yet) with your planned SIPP?

If you've not been an employee for 20 years, that was well before the days of auto enrolment. You would only have had a pension scheme through your employer if they offered a scheme and either enrolled you, or you applied to join. Otherwise all they would have had to do was 'nominate' a stakeholder pension and it was up to you whether or not to join - they didn't have to contribute.

dunstonh

I have not opened a pension before, but i am looking to see if there is a way i can use my allowance from last year as well as this year.

a) you cannot use 2024/25 allowance without using 2022/23 & 2023/24 first. Carry forward requires the full use of this year first and then goes back 3 years, 2, 1 in that order.
b) and most importantly, you say you don't have a pension. So, carry forward is not available to you.

After speaking to my chartered via email he said it is possible to forward last tax years allowance even thought I was not registered with a pension scheme last year.

Maybe he assumed you had a pension already.  Its unusual for someone with your working life not to have at least one pension, even if its small.