End of the companies financial year so what better time to buy a chair I have lusted after since it was launched?
My Sayl chair has served me well but this is very nice. Not sure on thigh support so may need to adjust a bit more.
Hi - I will try and keep this brief but I am totally confused tbh.
Two company Directors have set up personal SIPPs where the company can pay in. We "earn" £12,500 in PAYE. The rest is paid in dividends approx £200K. We're sick of the tax bill and rapidly heading towards wanting to sell the business and retire (perhaps 3 years out).
We will soon be paying off the mortgage and the objective is to live within the £50K ish each limit (so c £100K) for lower divi tax (now 10.75%) and stick the rest in tax efficient pensions.
We will have around £120K spare in the business pa (after corp tax calculated to give us the divis we need). We plan to pay in £60K each p.a as we understand this is the most we can contribute as directors to our SIPPs - Is this correct ? We maybe able to put more in and if so we think we can use unused allowance (we haven't contributed to a pension in the last 3 years due to developing the company).
We will be able to also contribute into the SIPP directly if it is tax advantageous or stick money in a ISA.
Our understanding is that the 2 x £60K is a business expense and comes off company tax (25%). Is that correct? we then pay the Divis out of what is left (and leave the tax for this obvs).
Am I missing anything?
Many thanks in advance.