Pensions for Self Employed

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Kelly_Garbula
Kelly_Garbula Posts: 1 Newbie
in Pensions, annuities & retirement planning
Where would be recommended to contact to set up a pension when self employed?

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  • LHW99
    LHW99 Posts: 4,216 Forumite
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    Depends on whether you want to manage it yourself (eg SIPP) or have a personal pension. How much you want to contribute. Whether you already have any existing DC pensions from earlier work that you could use.
  • greenglide
    greenglide Posts: 3,301 Forumite
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    Are you really "self employed" (sole trader)?

    Many people come here claiming to be self employed when in fact they are employed by there own limited company. The suggestions put forward will be totally different if you have a limited company.
  • Terron
    Terron Posts: 846 Forumite
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    greenglide wrote: »
    Many people come here claiming to be self employed when in fact they are employed by there own limited company. The suggestions put forward will be totally different if you have a limited company.

    Of course you can be both.
  • dunstonh
    dunstonh Posts: 116,374 Forumite
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    Terron wrote: »
    Of course you can be both.

    Yes. It is possible for someone to operate on a self-employed basis and have a separate limited company for something else. Although it is quite rare.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Terron
    Terron Posts: 846 Forumite
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    dunstonh wrote: »
    Yes. It is possible for someone to operate on a self-employed basis and have a separate limited company for something else. Although it is quite rare.

    Or for the same thing :) I let properties in my own name and also through a company (different properties), due to the change in tax. I have been researching whether I can pay a years worth of class2 NICs to max out my SP.
  • dunstonh
    dunstonh Posts: 116,374 Forumite
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    Terron wrote: »
    Or for the same thing :) I let properties in my own name and also through a company (different properties), due to the change in tax. I have been researching whether I can pay a years worth of class2 NICs to max out my SP.

    Why not just take a salary of £680pm from the limited company? That gets you to the primary threshold without paying a penny NI but qualifies you for the SP.

    And yes, your scenario is a rare one but one that is likely to see more people fall foul of under the new rules.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Terron
    Terron Posts: 846 Forumite
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    edited 14 February 2018 at 11:22PM
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    dunstonh wrote: »
    Why not just take a salary of £680pm from the limited company? That gets you to the primary threshold without paying a penny NI but qualifies you for the SP.

    The main reason is that the company is not making that much, yet.

    Maybe in the future I will pay myself a salary from the company, but currently paying a directors pension, a small dividend and repaying the money I loaned the company for deposits look more tax efficient.

    Class 2 NICs are so cheap that it seems worth paying them for the one year I need, if I can.
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