pension tax relief to be withdrawn? act now

[london calling]

Just in case the new goverment after april 2010 decides to reduce or stop tax relief on pension contributions I think this tax year is a good year to increase my pension contribution to get the tax benefit while it is still available.

I have a limited company. Can I pay all trading profit into my pension? I will pay only £10,000 salary this year and will be careful to leave anough money for vat and end of year expenses.

Also can I pay the money lets use £10,000 as an example from the company to my personal bank account and then send it to my SIPP provider (hargreaves lansdown) or does to have to go direct from the company bank account to hargreaves lansdown?

[David Griffiths]

You will have to make the payment directly from the company to your SIPP provider, and flag it as a company contribution.

You are not restricted to the £10,000 salary that you draw.

[Sanjay Kachhela]

Hi

Please remeber the forestalling rules and the limits you can pay. The rules are quiet complex but if you can tell me how much your income was in 2008,2009 (in total including dividends,bank interest,rents etc etc) and how much your looking to contribute to your pension I can help.

PM me if your prefer.

Regards

Sanjay

[David Griffiths]

The forestalling rules apply to individuals with income in excess of £150,000 pa. Call this a wild guess, but if the OP was paying a salary of £10,000 then he or she's unlikely to fall in to this category

[Sanjay Kachhela]

Yep, agree. But I read the post as saying they will only take out 10k salary, not knowing what else was available and not knowing what the income was....also not sure what the level of profit is either.