Business Financial Planning
Company and Director Pensions
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Contributing to a pension can be one of the most tax-efficient ways for business owners and company directors to save for retirement. Lower your tax bill and increase your pension fund simultaneously.
It can also be a great way of extracting company profits and funding long-term financial security.
Pension contributions can be treated as an allowable business expense and can therefore be offset against your company’s corporation tax bill.
As well as providing for retirement, a pension for a director or business owner is a way of extracting profits from the business without paying tax or National Insurance. You can’t spend that money right now (unless you are about to retire) and you will get taxed on the income when you do take it, but at least the money paid in is for your benefit, unlike most other business expenses.
We often hear business owners say that their business is their pension. This shouldn’t be the case. It should be seen as the vehicle that will fund their pension.
This strategy is fraught with risk, we all know we should never put all our eggs in one basket. Consider diversifying by using some of the profits generate by your business along the way, in an extremely tax-efficient way.
For more on this subject why not contact us on 01454 501 959 or use the contact form.
Extract profits from your business without paying tax or National Insurance by investing in company and director pensions for long term financial security. Find out how pension contributions can be treated as an allowable business expense and can therefore be offset against your company’s corporation tax bill.
Safeguarding the future of your business should the unexpected happen. We can help prepare for when a partner or director in your business unexpectedly dies. It’s not necessarily something you’d expect to happen, but most people to whom it has happened once thought the same.
Helping your employees save for their retirement. It’s all part of workplace pension reform, it means that as an employer you will need to automatically enroll certain members of your workforce into a pension scheme, and you’ll need to make a contribution towards it.