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  • FIRST POST
    • sy8111
    • By sy8111 2nd Dec 17, 6:45 PM
    • 24Posts
    • 0Thanks
    sy8111
    Can I contribute more than 3600 in this case?
    • #1
    • 2nd Dec 17, 6:45 PM
    Can I contribute more than 3600 in this case? 2nd Dec 17 at 6:45 PM
    If I don't have work but have income from dividend and rent and the total income is over 3600?
Page 1
    • dunstonh
    • By dunstonh 2nd Dec 17, 7:08 PM
    • 92,643 Posts
    • 59,963 Thanks
    dunstonh
    • #2
    • 2nd Dec 17, 7:08 PM
    • #2
    • 2nd Dec 17, 7:08 PM
    Do you own your rental properties through a limited company?

    assuming not, then no you cannot.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • sy8111
    • By sy8111 2nd Dec 17, 7:13 PM
    • 24 Posts
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    sy8111
    • #3
    • 2nd Dec 17, 7:13 PM
    • #3
    • 2nd Dec 17, 7:13 PM
    Do you own your rental properties through a limited company?

    assuming not, then no you cannot.
    Originally posted by dunstonh
    What about dividend? Apart from rent of my own property I receive over 3600 dividend from a company I own 50% shares.
    • Dazed and confused
    • By Dazed and confused 2nd Dec 17, 7:17 PM
    • 2,564 Posts
    • 1,232 Thanks
    Dazed and confused
    • #4
    • 2nd Dec 17, 7:17 PM
    • #4
    • 2nd Dec 17, 7:17 PM
    They don't count for this purpose,

    http://www.pruadviser.co.uk/content/knowledge/technical-centre/tax_relief_members_contributions/
    • JoeCrystal
    • By JoeCrystal 2nd Dec 17, 7:20 PM
    • 1,405 Posts
    • 861 Thanks
    JoeCrystal
    • #5
    • 2nd Dec 17, 7:20 PM
    • #5
    • 2nd Dec 17, 7:20 PM
    Dividends are not relevant along with investment income and property rental income
    • xylophone
    • By xylophone 2nd Dec 17, 8:04 PM
    • 25,373 Posts
    • 14,969 Thanks
    xylophone
    • #6
    • 2nd Dec 17, 8:04 PM
    • #6
    • 2nd Dec 17, 8:04 PM
    Dividends are not relevant along with investment income and property rental income

    http://www.pruadviser.co.uk/content/knowledge/technical-centre/tax_relief_members_contributions/

    rental income is generally not relevant earnings but some rental income may be included if it is in respect of UK or EEA furnished holiday lettings business
    • dunstonh
    • By dunstonh 2nd Dec 17, 8:31 PM
    • 92,643 Posts
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    dunstonh
    • #7
    • 2nd Dec 17, 8:31 PM
    • #7
    • 2nd Dec 17, 8:31 PM
    What about dividend? Apart from rent of my own property I receive over 3600 dividend from a company I own 50% shares.
    Originally posted by sy8111
    Are you just a shareholder or do you hold an officer position?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • sy8111
    • By sy8111 2nd Dec 17, 8:34 PM
    • 24 Posts
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    sy8111
    • #8
    • 2nd Dec 17, 8:34 PM
    • #8
    • 2nd Dec 17, 8:34 PM
    Are you just a shareholder or do you hold an officer position?
    Originally posted by dunstonh
    officer position
    • dunstonh
    • By dunstonh 2nd Dec 17, 9:36 PM
    • 92,643 Posts
    • 59,963 Thanks
    dunstonh
    • #9
    • 2nd Dec 17, 9:36 PM
    • #9
    • 2nd Dec 17, 9:36 PM
    Shareholding directors can usually pay into the pension using company contributions upto the 40k allowance (and use carry forward if applicable). Depending on the nature of the limited company.

    Why are you not taking a salary? Most directors will take a salary to the primary threshold. This qualifies you as if you have paid NI contributions but you don't actually pay a penny in NI. For things like state pension qualification, this can be important.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • enthusiasticsaver
    • By enthusiasticsaver 3rd Dec 17, 8:01 PM
    • 6,403 Posts
    • 13,180 Thanks
    enthusiasticsaver
    It has to be earned income. Is there a reason you are only taking dividends and not a salary? You should look into your NI contribution record as this will affect your state pension.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Clifford_Pope
    • By Clifford_Pope 4th Dec 17, 11:24 AM
    • 3,590 Posts
    • 3,740 Thanks
    Clifford_Pope
    It has to be earned income.
    Originally posted by enthusiasticsaver
    Not if you are a director.
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