Hi everyone
As the funding of prsa's has changed to 100% of salary I will have to change tactics.
I've only just set up a limited company (literally) and I'm looking to structure it as efficiently as possible.
I already have a taxable rental income of 45k a year so this uses up all my tax credits. I won't need more money and am mortgage free.
I expect the limited company to have taxable profits of 40-50k
My plan was to pension most of this before the recent finance bill.
Now I'm wondering if I pay myself 20k salary and make a personal pension contribution will I receive 40% deduction or 20% as the un-earned income from the rental isn't allowed for pension payment?.
Could the company pay me 20k and make a 20k pension contribution for me and then I make a 4k (20% as I'm 35) contribution personally from my salary?.
Or would I be better off taking no salary, paying the CT on it and using a corporate investment account and looking at entrepreneurial relief and having it in my personal name in maybe 20 years.
I know the landscape will probably be a lot different in 20 years but just based on what we can do today.
Appreciate any advice
Kind regards.
As the funding of prsa's has changed to 100% of salary I will have to change tactics.
I've only just set up a limited company (literally) and I'm looking to structure it as efficiently as possible.
I already have a taxable rental income of 45k a year so this uses up all my tax credits. I won't need more money and am mortgage free.
I expect the limited company to have taxable profits of 40-50k
My plan was to pension most of this before the recent finance bill.
Now I'm wondering if I pay myself 20k salary and make a personal pension contribution will I receive 40% deduction or 20% as the un-earned income from the rental isn't allowed for pension payment?.
Could the company pay me 20k and make a 20k pension contribution for me and then I make a 4k (20% as I'm 35) contribution personally from my salary?.
Or would I be better off taking no salary, paying the CT on it and using a corporate investment account and looking at entrepreneurial relief and having it in my personal name in maybe 20 years.
I know the landscape will probably be a lot different in 20 years but just based on what we can do today.
Appreciate any advice
Kind regards.