When it comes to making pension contributions you have two choices; 1. make them personally from your savings or income or 2. have your Limited Company make contributions directly to your personal pension.
Why is it a good idea for your company to make the contributions?
If you withdraw a small salary from your company then the most you can contribute to your pension is the same as your salary less the 20% tax relief that your pension provider will usually claim for you.
If you make contributions from your company then you are not limited by your salary level.
When you make contributions from your Ltd Company you get 20% Corporation tax relief and you are able to withdraw funds from your company without having to pay income tax on them - a great combination that you should not overlook.
For more information on contractor pensions then please contact us for a free consultation