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Company pension dilemma

My wife and I are the only employees of a limited company which is

100% owned by me. This set-up is unlikely to change for the foreseeable future.

We both have very small pensions from previous jobs. To date, for our present company, our salaries have been subject to NIC (both employee and employer contributions). However, our lifetime NIC is too low to qualify us for a state pension.

So I'm looking into starting up a company pension fund. The key for us is to start a fund which will pay a lump sum upon retirement, reduce our present NI contributions and make tax efficient contributions which will vary in value according to the profitability of our business. Having looked into it, I believe that a Self-invested personal pension plan (SIPP) might be most appropriate, since we may want to invest some of the business profits in a commercial property and tie this in with our pension.

I just wondered if any small business owners out there had any experience to share with regards the above idea.

Are Trustee fees more expensive for a SIPP than alternative pension schemes?

Thanks for your interest

Reply to
Selwyn McDonald
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Not sure that this is the right group for pensions advice

Reply to
AlanSlough1970

You need to speak to a good independent financial advisor who understands self-employment etc. I think you company can pay into your own personal pensions if you wish (no need for a company scheme) and you do not need to go the SIPP route unless you want to. It will cost a bit more.

Reply to
hzatph

The way I read it, he's not self-employed. He's employed by a company that he owns, which I think is technically different.

He should consider not only which pension is best personally but also which benefits his company most, since he is the 100% shareholder.

Reply to
Pandora

If he owns a company then he should have some of his invoices paid overseas where the money gets deposited into interest bearing accounts.

If I'm not mistaken income will not be taxed until a payout is made after he's retired, and the accumulation of interest is with pretax money.

There are many ways to avoid taxation during one's working years.

Reply to
foolsrushout

Many illegal.

Reply to
PeterSaxton

Yes, Peter is write, follow this and you could well end up with a free holiday in a special hotel, two beds to a room, en suite, regular exercise facilities, with a fixed term.

Its called fraud.

Reply to
Simon

It's also called 'right', not 'write'. I suggest that prison or heavy fines should be mandatory for bad spelling or grammar. :-)

Reply to
Terry D

Just because you don't understand tax law......

Reply to
foolsrushout

I let it go because such misuse of words is more an indicator of educational level than a simple misspelling.

They're already in a prison.

Reply to
foolsrushout

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