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Whiskychaser · 29-10-2009, 07:37 AM

That’s great advice – thanks John.

I’m in a similar situation to Jim (though not quite as wealthy LOL!). Can you tell me what difference it would make paying into a SIPP via either company or personal contributions?

Whilst contributions direct from the company bank account would be made with no deductions at all (i.e. not liable for PAYE, N.I. Corporation tax etc), I don’t understand what advantage this gives over a contractor who pays dividends from the company to himself, and then invests these in a SIPP. As far as I can tell, such ‘personal’ contributions would attract tax relief exactly equivalent to the tax paid on them by the company or individual (i.e. the corporation tax plus any higher rate top-up tax that would otherwise be payable via your own personal tax return). So, as far as I can see, everything ends up equal, no matter how you arrange things.

I’m left wondering what I’ve missed here though – can you give any pointers?

Many thanks!

29-10-2009, 07:37 AM	#3 (permalink)
Whiskychaser Newbie User type: Contractor Join Date: Oct 2009 Posts: 1 Thanks: 0 Thanked 0 Times in 0 Posts	That’s great advice – thanks John. I’m in a similar situation to Jim (though not quite as wealthy LOL!). Can you tell me what difference it would make paying into a SIPP via either company or personal contributions? Whilst contributions direct from the company bank account would be made with no deductions at all (i.e. not liable for PAYE, N.I. Corporation tax etc), I don’t understand what advantage this gives over a contractor who pays dividends from the company to himself, and then invests these in a SIPP. As far as I can tell, such ‘personal’ contributions would attract tax relief exactly equivalent to the tax paid on them by the company or individual (i.e. the corporation tax plus any higher rate top-up tax that would otherwise be payable via your own personal tax return). So, as far as I can see, everything ends up equal, no matter how you arrange things. I’m left wondering what I’ve missed here though – can you give any pointers? Many thanks!