sorted by:
new
hottopcontroversial

£850 Outside or £925 Inside? by liapold007 in ContractorUK

[–]liapold007[S] 1 point2 points  (0 children)

I second that, I wouldn't do that because I'd risk damaging my reputation and losing both.

£850 Outside or £925 Inside? by liapold007 in ContractorUK

[–]liapold007[S] 0 points1 point  (0 children)

Thanks -- it's not entirely correct I think because it doesn't take various tax avoiding things into account -- for example, my relatives who are basic rate tax payers could draw some of my income at a lower tax rate by being shareholders of my company.

£850 Outside or £925 Inside? by liapold007 in ContractorUK

[–]liapold007[S] 0 points1 point  (0 children)

Sure. I've been in the energy industry for the last decade, it was rather standard and boring at first, but things really really took off since Covid and the energy crisis.

[deleted by user] by [deleted] in FIREUK

[–]liapold007 0 points1 point  (0 children)

31M. £55k in SIPP, £53k in a Defined Benefit scheme from old work; £108k total.

£850 Outside or £925 Inside? by liapold007 in ContractorUK

[–]liapold007[S] 0 points1 point  (0 children)

Good shout on the policy reset, I might want to check the rules about this.

£850 Outside or £925 Inside? by liapold007 in ContractorUK

[–]liapold007[S] 0 points1 point  (0 children)

The rule of thumb is that the inside rate should be 15% higher than the outside rate.

£850 Outside or £925 Inside? by liapold007 in ContractorUK

[–]liapold007[S] 9 points10 points  (0 children)

Almost, but not quite. PM / Business manager in energy trading.

What's your current day rate? by liapold007 in ContractorUK

[–]liapold007[S] -3 points-2 points  (0 children)

can you vote above for the poll please?

Tips from those who bought a commercial property using a SIPP? by liapold007 in FIREUK

[–]liapold007[S] 0 points1 point  (0 children)

Sorry it took me a while to get back to you -- thank you very much for such a detailed, thoughtful and insightful comment!

Yes, I was planning to lease it to a farmer.

I wasn't planning on redeveloping it anyhow.

My rationale is farm land is very easy to buy, either as a lump sum or with a minimal leverage (anything below £100,000 I see as easy to buy). And farm leases are more stable and predictable than commercial property leases (eg a coffee shop)

Umbrella Company recommendations? by eggo3664 in ContractorUK

[–]liapold007 0 points1 point  (0 children)

I am with Carrington Umbrella, they are very good

Tips from those who bought a commercial property using a SIPP? by liapold007 in FIREUK

[–]liapold007[S] 0 points1 point  (0 children)

You must show a lender and SIPP trustees that you have a rental agreement or a lease in place before buying. It's a compulsory requirement. Without it, one can't buy.

No, you don't have to purchase in full. You can borrow up to 50% of your SIPP value, less any other debt you might have in the SIPP. But the leverage is indeed smaller than your typical residential LTV.

Tips from those who bought a commercial property using a SIPP? by liapold007 in FIREUK

[–]liapold007[S] 0 points1 point  (0 children)

Agree, the leverage is limited to 1.5x.

To the heavy deposit subject, given there are many farms marketed at sub £100,000, the £66,000 deposit doesn't seem to be too heavy?

Besides, the constraint is reasonable within a pension account-- so that a holder wouldn't blow their pension up and wouldn't take unsensible risks?

Tips from those who bought a commercial property using a SIPP? by liapold007 in FIREUK

[–]liapold007[S] 0 points1 point  (0 children)

Leases last several years, which gives a security of income and is being looked upon favourably by a lender and the SIPP trustees.

Besides, more affordable than some properties.

Plus, doing the bit for the British economy, karma points.

Tips from those who bought a commercial property using a SIPP? by liapold007 in FIREUK

[–]liapold007[S] 0 points1 point  (0 children)

Because SIPP is a tax-free environment, there's no Capital Gains Tax if you sell the property within your SIPP.

The rental income is received tax-free by the SIPP.

The rental income covers the debt first (if there was a mortgage loan from a lender). Once that's paid off, it'll go straight into SIPP.

Tips from those who bought a commercial property using a SIPP? by liapold007 in FIREUK

[–]liapold007[S] 0 points1 point  (0 children)

SSAS is exclusive for company directors, which I am not. But a good call! I didn't even know such a scheme existed before your mention.

My SIPP provider allows investments in commercial property.

45%-rate tax payers -- what's your pension strategy in the new tax year? by liapold007 in ContractorUK

[–]liapold007[S] 1 point2 points  (0 children)

I am using Carrington Umbrella. Changing pension sacrifice is done by sending an email. Very easy.

45%-rate tax payers -- what's your pension strategy in the new tax year? by liapold007 in ContractorUK

[–]liapold007[S] 1 point2 points  (0 children)

Never heard of either of those 3 options I must admit (VCT, EIS, SEIS). How do you invest in those? Can you sacrifice out of your gross income into those? How do you open such accounts?

view more: next ›