Anyone here make direct pension pot payments from the business ? I'm getting conflicting advice... 1/ Maximum is the same a salary and I pay myself just £8424 a year and the wife gets the same. or 2/ £40,000 per director per year and can go back 3 years..... off sets corporation tax. Given that one can take 25% of the pot tax free when you retire (from 55 years onwards) it seems like good tax planning? First world problems here on the forum. I think it's a bummer that my state pension won't kick in until I'm 67... that was going to be my beer money. It's only 40 pints of Guinness... a week
You can pay £40k a year directly into your pension pot and yes you can go back 3 years if you didn’t or weren’t able to maximise in the previous 2 years. I’m just about to do the same for this tax year and last year.
Beware the Life Time Allowance, which applies not only to contributions invested but also to benefits taken. It would be a nice problem to have, I don't, but I live in hope. Over a lifetime in can make saving via an ISA account more attractive than a SIPP. It is complicated and always subject to change.
