Time to think about pensions? Make
contributions through your limited company and save £££'s in
tax
Many of our clients often look for extra tricks on how to save
on taxes. There are many methods of doing so that we discuss with
our clients, but there is one very simple way saving on tax that is
often overlooked - Corporate Pension contributions.
We're always being told that we don't save enough for our
future, that we're all living longer and that problems are on the
horizon for state pension funding. As a result the advice
from Government is to set up your own pension, and the impending
employer auto-enrolment systems coming in from 2013 will see us
moving towards a saving culture. So here at Nasa Consulting
we say why not get in on the act early?!
For those or our limited company contractors interested in
making pension contributions there are serious tax savings to be
made if it is made through your limited company. You will
save the Corporation Tax on the amount you contribute - at least
20% - and any higher rate personal tax that would have been payable
had you taken the money as dividends.
There are other, smaller advantages too as the administration is
very straightforward for limited company contributions and that
there is no limit on the amount the limited company can pay to your
pension (as long as it doesn't exceed profits!).
If you are interested in this, you should discuss it with a
financial advisor. Nasa Consulting is not registered by the FSA so
cannot advise you on pension products. We do however have a
panel of recommended advisors that we would be happy to put you in
touch with. They specialise with contractors and understand
your unique circumstances.
If this is of interest for you please either contact your Client
Manager directly or email us at marketing@nasaconsulting.com
with 'Pensions' as the subject and we'll arrange a no obligation
call.