The Lemon Fool

Very much a theoretical question.

If I was working for a limited company which effectively employed only me what would be my best approach to making pension contributions?

I currently work for a small company that has a pension scheme which allows me to salary sacrifice direct into a pension (the pension is in my name). This has some advantages regarding tax.

Are similar schemes available for small companies and if not what other options are available?

Thank you

AiY

AsleepInYorkshire wrote:Very much a theoretical question.

If I was working for a limited company which effectively employed only me what would be my best approach to making pension contributions?

I currently work for a small company that has a pension scheme which allows me to salary sacrifice direct into a pension (the pension is in my name). This has some advantages regarding tax.

Are similar schemes available for small companies and if not what other options are available?

Thank you

AiY

Just have a company pension contribution into your SIPP.
More interesting question is whether this company could also employ your spouse and make a pension contribution for him/her as well.

ReallyVeryFoolish wrote:... Company expenditure is of course liable to the "wholly and exclusively" test but I don't think SIPP contributions have ever been challenged for that.

Not SIPP contributions specifically but there has been case law on pension schemes contributions generally.

This and linked pages probably covers it:

Specific deductions: pension schemes: wholly & exclusively: controlling directors & shareholders
https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim46035

Commencing:

A pension contribution by an employer to a registered pension scheme in respect of any director or employee will be an allowable expense unless there is a non-trade purpose for the payment.

In cases where the contribution is part of a remuneration package paid wholly and exclusively for the purposes of the trade, then the contribution is an allowable expense. General guidance on deductions for remuneration paid to close relatives of directors can be found at BIM47105. ...

Then read on if relevant.

ReallyVeryFoolish wrote:My bold. That's what I said. ...

My lack of bold but do bear in mind you included but I don't think thus I was actually supporting your position.

What I found of interest was what was linked from that webpage and may have some relevance to an early comment.

Specific deductions: staffing costs: payments to dependants and close relatives
https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim47105

Btw my replies are primarily for the OP as you clearly know it all already.