Pension advice

Megahurtz400 · 30 Dec 2020 at 16:09

Hey all,

Finally trying to get something sorted pension wise after years of saying I should be doing it.

I think i've got a pension from an old job with next to nothing in it (Less than £1000).

Have been doing some research and have found some info on SIPP's and Lifetime ISAs.

Was planning on opening a SIPP and and Lifetime ISA and putting money into them every month, the SIPP definitely needs more research before pulling the trigger, but is there anything WRONG with this plan?

Also, with the Lifetime ISA, I currently have a Stocks & Shares ISA with H&L, am I right in thinking that I can only pay in up to £20,000 (£4000 into the LISA) into all of my ISAs before having to pay tax on them? (

Obviously speaking to an IFA would be the best way to go, but just trying to get my head around a few things first.

muon · 30 Dec 2020 at 16:17

Your employer doesn't offer a salary sacrifice pension scheme?

Always the best option as you avoid 32%/42% tax and NI.

Megahurtz400 · 30 Dec 2020 at 16:22

muon said:
Your employer doesn't offer a salary sacrifice pension scheme?

Always the best option as you avoid 32%/42% tax and NI.

Self employed, Director of Ltd. Company

Hyburnate · 30 Dec 2020 at 16:31

Megahurtz400 said:
Self employed, Director of Ltd. Company

Then the company money will be your employer contributions reducing your corp tax.

You really need to speak to a specialist though

Diddums · 30 Dec 2020 at 16:34

Hyburnate said:
Then the company money will be your employer contributions reducing your corp tax.

You really need to speak to a specialist though

Listen to this bloke.

I just lumped it all in to Pensionbee with a low risk investment strategy purely for simplicity's sake. Seems to be working fine so far, the amount earned so far has already spanked what the big guns were achieving.

BennyC · 30 Dec 2020 at 17:20

Megahurtz400 said:
Also, with the Lifetime ISA, I currently have a Stocks & Shares ISA with H&L, am I right in thinking that I can only pay in up to £20,000 (£4000 into the LISA) into all of my ISAs before having to pay tax on them? (

The annual allowance for an ISA (be that Cash or S&S) is £20,000.

There is no limit to the amount you can pay in overall to an ISA, they aren't capped but you can't exceed the annual allowance.

You can only open one Cash and Stocks & Shares ISA, per tax year.

You can split the annual allowance between both a Cash ISA and S&S ISA in any tax year, there is no limit or predefined ratio between each.

You can't pay in to more than one of each 'type' of ISA in any tax year.

For example, in five years time you may well have opened a S&S ISA consecutively for five years. In the sixth year you can't pay £4,000 in to each (1/5th of the annual allowance). You can either pay in to one of these, or open a new one and pay in to that.

No back allowances can be carried forward. Losses do not boost future years allowances. Gains/Interest are tax free.

Megahurtz400 · 30 Dec 2020 at 17:42

Hyburnate said:
Then the company money will be your employer contributions reducing your corp tax.

You really need to speak to a specialist though

Will give the accountant a message now

Diddums said:
Listen to this bloke.

I just lumped it all in to Pensionbee with a low risk investment strategy purely for simplicity's sake. Seems to be working fine so far, the amount earned so far has already spanked what the big guns were achieving.

Might give you a message once i've spoken to accountant, cheers