Clean It Up
UK Floor Cleaning Forum => Carpet Cleaning Forum => Topic started by: jasonl on October 03, 2015, 08:43:08 am
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Carrying on from the tax advice thread .
An average carpet cleaner can retire as a millionaire , with a very handsome pension pot . I know several carpet cleaners and dozens of friends who are benefitting from this .
It is kept quiet usually but it is a huge part of many business owners strategy .
A sipp pension means self invested personal pension . You decide and control where your money is invested though most people choose commercial property.
Run down property an be very cheap to buy , it is then sold to your pension pot and your business rents it from your pension fund meaning your business gets tax relief for the rent , which then adds to your fund .
Plots of land and commercial property at low costs is available in any town in the uk you just have to look for it .
Over a few years increased property values and rent received along with tax relief adds up to a tidy sum .
http://www.which.co.uk/money/retirement/guides/introduction-to-personal-pensions/self-invested-personal-pensions-explained/
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i am trying to figure away to get cash out of my personal pennsionwithoutpaying tax for a investment property to be my pennsion without paying tax , but also if you put cash in get extra tax how long does it have to stay in or would it be better to do above but how long before i can buy the properties
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Ian a sipp can only be used for commercial property now .
Any pensions adviser can arrange it all the cost is up to 2% of the fund value then I pay .8% a year to manage it .
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Hi Jason would a holiday let ie a cottage let for holidays be considered commercial?
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I think so so long as it is furnished , you would need advice though
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Thanks Jason got some time on my hands will look into it.
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Many financial advisers will consult for free on the viability of these schemes . For me it works out better than just owning the property and adding rent I would have paid to earnings which I then pay tax on .
I have an allowable expense but ultimately I am still receiving that expense in my pension pot .
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We started a SIPP this several years ago when we purchased our workshop. Instead of getting a mortgage to buy the property I used the capital in my private pension to fund the purchase. Now our business pays rental directly in to my pension pot for using the property. It's a good way to save on tax.
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As I see it when you invest in a personal pension the fund the invests in commercial property , a sipp merely does the same but with you in control .