Pension and Limited Company
Discussion
I'm just thinking out aloud here so please feel free to add.
I'm thinking of staring a small business as extra to my main income. The idea would not to addd to my monthly income but to bolster the pension pot which I'm relatively poor on.
The question is, assuming I make a profit, what is the most tax efficient way to add to the pension?
1. Ltd Company pays directly into a new pension for Director?
2. Take share dividends and add to existing pensions as AVC?
3. Take a salary and use net to add as AVC?
4. Company loans cash to Director?
I'm a 40% tax payer through PAYE in main job but not likely to get anywhere near 50%.
I'm thinking of staring a small business as extra to my main income. The idea would not to addd to my monthly income but to bolster the pension pot which I'm relatively poor on.
The question is, assuming I make a profit, what is the most tax efficient way to add to the pension?
1. Ltd Company pays directly into a new pension for Director?
2. Take share dividends and add to existing pensions as AVC?
3. Take a salary and use net to add as AVC?
4. Company loans cash to Director?
I'm a 40% tax payer through PAYE in main job but not likely to get anywhere near 50%.
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