Single, no dependants, self employed. Best setup for SIPP, LISA, SSISA ?

Qubeley

I pay myself basic salary for NI contributions (12570 a year) then take about 35k dividends to cover my lifestyle (rent, food, shopping, holidays)

That leaves me with about 100k in my company accounts after all corporation and VA taxes are paid.

My plan is to then:

• Take 4k dividend, put straight into LISA
• Put 20k into SIPP as employer contributions (all into HL Multi-Index Moderately Adventurous)
• Take 20k dividend, put into Stocks and Shares ISA (mostly all into invesco ftse all world)

My question is do I need to up my salary to match what Im contributing as the employer?

I was under the impression employer contributions are salary sacrifice, so should my salary be the current base of 12570 + whatever I plan to contribute as the employer into my own pension?

Above plan should max out ISA contributions, and I would still have 45k sitting in my company accts

I'm not sure what to do with the rest of the money. Right now it's sitting in a very basic 1.5% aer account, I don't want to put it all into sipp because I hate the fact I can't touch it for the next 30 years, and Im hesitant to take it out as dividend to invest into my SSISA because of tax. What would you do?

Thanks

Qubeley

I mention self employed, but I have a ltd company of which I am the director and employee

dunstonh

My question is do I need to up my salary to match what Im contributing as the employer?

No. Because its not a personal contribution but employer.

I was under the impression employer contributions are salary sacrifice, so should my salary be the current base of 12570 + whatever I plan to contribute as the employer into my own pension?

That is not correct. You are not utilising salary sacrifice. So, salary sacrifice doesn't apply to you.

I'm not sure what to do with the rest of the money. Right now it's sitting in a very basic 1.5% aer account, I don't want to put it all into sipp because I hate the fact I can't touch it for the next 30 years, and Im hesitant to take it out as dividend to invest into my SSISA because of tax. What would you do?

You can get a better business savings account and leave it in there as retained profits.

Or it may be better taking it now in dividends upto the basic rate band as dividend taxation increases next tax year. You can then take less dividends next year.

Put 20k into SIPP as employer contributions (all into HL Multi-Index Moderately Adventurous)

Thats an expensive option for a DIY option. You are almost paying IFA-level charges with that but not getting the IFA service with it. The point of going DIY is to save money. You are not really saving much using that fund on that platform.