I have a question, and please forgive me if I make any mistakes using this board
I'm working with my accountant regarding a few tax issues and one of them is regarding the amount my limited company (sole director) can pay into my personal pension each year. They are saying it's £40,000. Firstly, is that correct? Secondly they are saying I can use any unused allowance from the previous 4 years, but I thought (google) it was the last 3 years. I feel that is a mistake, but they do say they don't specialse in pensions.
I'm guess I'm really just looking for a second opinion.
Thank you so much in advance
Marc
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Replies (5)
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Employer contributions are limited to £40K per annum unless your income is high enough that it's tapered. You can use the current year's allowance and any unused allowances from the previous three years, four years in total. You have to have had a pension for the last four years for that to apply.
This post is by no means everything you need to know and if you're considering humping £160,000 into a pension I would suggest speaking with someone who does consider themselves an expert in pensions to determine what it is you hope to achieve and the best means for doing so rather than relying on google and anonymous forum posters.
An IFA is the place to start.
Independent Financial Advisor.
To be fair every time we come across this question from a client the IFA has said - we need a figure in writing from an accountant
Paul Crowley wrote:
An IFA is the place to start.
Independent Financial Advisor.To be fair every time we come across this question from a client the IFA has said - we need a figure in writing from an accountant
What figure are they requesting?
If we have done the calculation we remain silent.
If a previous IFA had been involved, again we remain silent
The client wants to see the effort applied to provide the advice he is seeking.
When IFA has independently assembled the key data then client can enjoy a good consultation.
And the advice that follows.
IFA s of late do not seem hungry for business.IMO