Self employed - where to get independent pension advice

[PookieSnackenberger]

I've been self employed for a long time and recently set up a limited company.

I have a tiny personal pension pot (£25K) from years ago but nothing else. I really need independent advice on how much I can pay and where to (safely) place my money.

I know I can pay myself a Directors Pension but I don't know where to start. My accountant suggested this but was unable to advise me further or offer recommendations due to conflict of interests.

I'm planning to wind down my work more in 10 years and retire fully in 15 years.

Also, can I pay pension contributions on previous years earnings? I have the funds to do this.

When you say you have funds, do you mean in your personal bank account?

Pension payments are a cost to the business. You can pay up to £160k this tax year if you can fund it. More likely it's less, but each year your company can pay £40k in the current year and also carry forward unused allowances from the 3 previous years. Getting a good monthly sum paid in and a sweep up of any unused turnover is usual.

Getting personal money in is slightly more difficult as you UK relevant earnings, now likely to be £11k ish.

If you can live off savings and push every bit of profit to a pension via your business, you're achieving the same thing, but just rearranging the pieces IYSWIM.

Money left in a business pays corporation tax, you can save this by moving money into a pension. Once corp is paid you can't retrieve it by paying the money to a pension so current tax year planning is always necessary, not just retrospective.

You need an IFA, do not touch St James Place with a shitty stick

I'm in a similar position and went to see an IFA but he basically said for the amount of money I'd be investing (£200-300 a month) I'd be better off doing some research myself and picking an "off the shelf" product, which is what I did. It was going to cost me about £1,000 for advice. Not sure whether it would be worth it in the longer term but I don't have that sort of money now. I just pay employers contributions.

Dont you can only carry forward unused annual allowance from previous years if you were a member of a registered pension scheme during those years. Doesn’t sound like the OP qualifies unless the rules of her previous personal pension define her as a member even though she’s not paying in any more.

Agree you need an IFA, try unbiased.com or the money advice service to find one. FCA site can tell you IFA specialisms so you can look for one that specialises in pensions.

Chessie it does. Money in a pension makes you a member. I am 100% certain. I have checked this exact point with HMRC and tech lines of providers before. I'm a Chartered IFA not guessing or quoting hearsay, honest clearly that statement could just make me a defensive nutter

Just for clarity, active payments are not needed during the years you claim carry forward on.

off the shelf Royal London Governed range is OK in that space.

My only concern is people tend not to take enough risk, nor get the structure correct. 90% Japan (I saw today) is certainly high risk, but it's also an opportunity cost.

Thanks for the clarification dont - I knew being a deferred member of a public sector scheme meant you could use carry forward but wasn’t sure about a frozen personal pension!

Thank you so much, especially dont as you have clarified all the things buzzing around in my head.

I'm slightly pissed off as I raised the pension issue with my accountant but they have not given me correct advice. I was told I must have an active pension and that my previous pension did not count. That has cost me a hefty corporation tax bill.

I can pay a substantial lump sum amount out of company profits, maybe 50K and then pay about £1K per month.

Just not sure where to put it TBH or where to find a really good IFA who is easy to deal with.

Regarding off the peg pension solutions, are Nutmeg any good? I have a HL ISA but I think their fees are too steep.

I was told I must have an active pension and that my previous pension did not count. That has cost me a hefty corporation tax bill

I'd be complaining, they are not qualified to advise. However that said, next year just draw the dividends from this year and bung new revenue into the pension. Get them to do the detail.

HL are too steep.

Nutmeg serves a purpose too, at least you don't need to make any choices. Just makes sure you have high enough risk as they will be very constrained otherwise.