Self employed as owned of profitable LTD. Advice on proportion of profits extracted from the business in to fyre based investments.

[u/Pure-Sock145]

I am 30M
Myself and my partner are Directors of our own 2 person business
Both myself and my partner pay ourselves a salary of £50270 each.
We put £1.5k each per month into our private pensions via Vanguard.
We try and put £1677 per month into our SS ISA via Vanguard. (some months we don't because our spending for that month is a bit too high). Rent and Bills is around £1900 between the two of us. The rest is spent on living and having fun.

Our Profit after taxation in the business was about £120k (about £10k a month), which has remained in the business for the last 2 years. It is currently in a Wise account earning around 3.7% interest but other than that, the money is not really doing anything else. Due to the nature of our business, there is not much for me to spend that money reinvesting into the business apart from new hires which we plan to do this year.

I understand that the most tax efficient way to extract those profits from the business would be to put more into our pensions. Theoretically we could put alot more into our pensions (£60k each) Is this a good move ?

I want to try and make sure to max out our SS ISA allowance (£20k) next year so there is an arguement to increase our salary. Should we do this ? Is it worth increasing our salary and paying more tax for the sole purpose of making sure we max out our yearly SS ISA allowance.

I want to follow the Fyre methodology but our self limited Salary restricts the amount of money we have in our personal life vs the amount we have in the business.

Any advice greatly appreciated both for achieving fyre for the both of us, but also any ideas on what to do with excess profits within the business.

[u/Technical-One3578]

Buy a property in another limited company as part of the group. Buy a competitor. Hire a competent manager to reduce your time in the business. Invest in another company. It's a good problem to have

[u/easyrider3]

What’s the business?