Should I start to empty my SIPP

NormalNorman

Although with DIY you can…

Both have the SIPPs from the same provider. Fortunately, wife engages with hers so will be familiar with mine.

The same with savings accounts and ISAs. We mirror each other.

Backed up with the usual spreadsheets and graphs of where and when our retirement income comes from.

dunstonh

If I take a salary, then there is employers NIC to take into consideration

You said in an earlier post: "I have a ltd company with no other directors or employees."

So why would you pay employers' NIC?

hoofy

So why would you pay employers' NIC?

I assumed if my ltd co paid me £12600 then £7600 of that would have a 15% employers NIC to pay on it. Have I got the wrong?

hoofy

taking 50k from your SIPP and putting it mostly in a GIA while taking living expenses from an ISA makes no sense to me. maybe I’m missing something.

I have never taken a penny from my ISA and always topped it up to the max.

My living expenses won't come out of money taken from SIPP or ISA. I have £70k in a bank account. When that is gone I will sell shares in my GIA and at the same time use up my £3k CGT allowance.

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/82101990#Comment_82101990

No it's my fault you would pay NIC as your single shareholder director (I was tripping over the references to your wife and had it in my head that she would be on the business as well, like so many spouses are). If your wife was a director, then you wouldn't pay NICs, as you would qualify for the employment allowance.

Could your wife be put on the company as a director?

kempiejon

When I started my default for a survivor was ftse100 tracker but the market has changed and I have come round to 80:20 global tracker:bonds.

hoofy

Could your wife be put on the company as a director?

TBH. My company now is just a hobby, it has served it's purpose. I could close the gate tomorrow if I wanted and that would be that.

Like I said, it has gone quiet now after the covid rush and that's how I like it. If it showed any signs of getting busy again I would just close the gate because I don't want to do the work. If it can make a 10 to 20k profit a year with me doing 10 minutes work a day, that will do me. Any profit could go in pension contributions and dividends if need be.

silvercar

if you are playing this tax game, consider government gilts. You pay tax on the interest but nothing on the gilt itself if you hold to redemption. Low interest gilts will mean a return that could beat net savings rates.

hoofy

https://forums.moneysavingexpert.com/discussion/comment/82102280#Comment_82102280

I'm playing the tax game, but I'm also investing in fairly high risk funds (mostly stocks) so the tax will catch up with me at some point. I know the advice would be to lower my risk, but I also like playing the accumulation game. I figure the market could drop 50% and I'd still be all right with my current expenditure.

silvercar

Even a high risk portfolio has some money in safer places.