Ltd company pension contributions

ChrisD. · 9 May 2017 at 11:39

Can someone explain how it works? No matter how many articles I read I still don't understand.

I do not pay into a pension currently and I'd have no idea who to go with.

Glanza · 9 May 2017 at 11:46

If it's for yourself as an employee your company should be in the process of setting one up for you (if under 250 people work there), generally on the accountants say so on who to go with. This is what happened for me, I got a welcome pack through and my wage was automatically adjusted to cover the contributions.

As an owner or employer you'd be better letting your accountant get this setup for you and work out the contributions off peoples wages.

SupraWez · 9 May 2017 at 11:46

Do you have your own Ltd company, if so you need to setup a pension for any of your employees including yourself.

NEST is the no charge government based fund, your employees can then choose to remain for opt out.

ChrisD. · 9 May 2017 at 11:47

I'm a single shareholder so I don't have to do it IIRC.

SupraWez · 9 May 2017 at 11:51

ChrisD. said:
I'm a single shareholder so I don't have to do it IIRC.

Are you an employee of your own company taking a regular wage as well as dividends?

If so you may still need to setup a company scheme and enroll, as above you can then choose to opt out, the governments online website for going the through the application asks questions and then lets you know if you need to or not.

If not but are interested in a pension then you could still set one up through your company and have the company make contributions as well as yourself or you could set up a personal / private pension scheme where only yourself contributes.

ChrisD. · 9 May 2017 at 11:56

SupraWez said:
Are you an employee of your own company taking a regular wage as well as dividends?

Yes I am, my accountant said I didn't have to do anything if I didn't want to. I think, it was some time ago.

jimjamuk · 9 May 2017 at 11:56

Set up a SIPP with someone like HL - then choose to pay into it as an employer or the employee.

For me I just make lump sum investments fro the LTD to the SIPP as the employer

dr_volki · 9 May 2017 at 16:02

ChrisD. said:
Yes I am, my accountant said I didn't have to do anything if I didn't want to. I think, it was some time ago.

you should have been sent a letter from the pension regulator some time ago, stating when you should start your pension enrollment.
Mine was in 2017 (i was the only employee), from there on you need to fill in an online questionnaire for the regulator. However you can also ring them and state you're the only employee to opt out of it completely. if i didn't do set up a pension or don't let the regulator know to opt out, i will most likely get a fine.

anyway that's how it was for me, it may have changed in the meantime.