I was hoping for some advice on the following situation.
A director of a limited company is on PAYE and receives their income through said limited company. They receive no dividends and for arguments sake a £100,000 salary per annum. There are multiple directors in this limited company. This current arrangement cannot be changed.
The above director wishes to set up a new limited company whereby they would be the sole director. Given the salary above and inability to change this, they would like to use this new limited company as a means of maximising contributions to their SIPP. The intention would be for the sole director to be zero salaried, no PAYE registration and instead contribute the entirety of the limited companies earnings to their SIPP as a direct employer contribution. The overall contribution level would not exceed their annual allowance. Ideally if for example they earnt £5000 in one year, they would contribute the entire amount or as much as allowed. There would be no requirement for any form of expenses or reimbursements. Ideally the director wishes for the second limited company for which they are the sole director to have no impact on their current tax arrangements, to not duplicate or cause complexity with multiple income streams and instead operate currently as a means of contributing to the SIPP. Should circumstances change in the future, they would like the ability to go about PAYE registration and potentially utilising this limited company as an income stream.
Is this feasible? And if so, what impact would it have on the directors Self Assessment (in terms of declaring employment in one or two limited companies for example) or for their current employer? Are they also allowed to effectively run the second Limited company with 0 profit and instead put all income into the SIPP as a contribution (obviously ensuring it doesn't exceed the allowances).
Edit: For clarification, there is no restriction on the director setting up a second limited company.