Pension contributions can be a powerful tax-saving tool for small business owners. Contributions to a personal or workplace pension scheme are eligible for tax relief, which means that a portion of the money you invest in your future is effectively covered by the government. As a company director, making contributions from your limited company can further reduce your Corporation Tax liability.
Employer pension contributions are tax-deductible expenses for the company, reducing the overall profit on which Corporation Tax is applied. By planning your pension contributions strategically, you can enjoy significant tax savings over time. Mershaw Accounting can work with you to optimize these contributions to fit both your business and personal financial goals.
It’s important to be aware of pension contribution limits. The current annual allowance is £40,000; however, contributions above this threshold may incur additional taxes. With careful planning, you can manage contributions to stay within limits and maximize your benefits. Our team can help you plan and monitor your contributions, ensuring you remain compliant and efficient.
Setting up regular pension contributions is not only a smart tax strategy but also a way to secure financial stability in retirement. Mershaw Accounting offers pension and tax planning guidance to help you get the most from your pension while meeting business objectives.
Disclaimer: This information is for guidance purposes only. Mershaw Accounting is not liable unless formally engaged to provide pension advice.