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Contractor Pensions

Tax planning avenues are increasingly being blocked by a government ever more desperate to maximise revenues. Against this backdrop pension planning represents a means to reduce both personal and company taxation. By exploiting tax breaks today the net result can be financial security in the future for you and also for any staff that you employ, and the pension experts at our Independent Financial Advisors are on hand to help.

Personal Contributions - Contractors can now personally invest (i.e. direct from your private bank account) up to 100% of salary into a pension and still benefit from income tax relief at your highest marginal rate (i.e. the government could be paying £4 for every £6 that you contribute).

Company Contributions - Business Owners may choose to draw a tax efficiently low salary which will limit the scope for personal investment but this need not limit your ability to reduce company and personal tax bills by making a pension contribution if we get the company to fund the scheme on your behalf. 'Employer' contributions can be as much as £40k pa, representing a very tax efficient method of transferring money from company into personal hands. In good trading years a hefty corporation tax bill could potentially be reduced to nothing.

Your pension can also become a central plank of your business by exploiting the freedom to own commercial property. You can hold business premises via a Self Invested Personal Pension (SIPP) with the pension in turn charging your company rent, helping to inflate the size of the pension pot even further.

Subject to minimum ages, you can now invest into the pension to cut your tax bill today, immediately withdraw 25% of the fund tax free and yet not even formally retire.

To discuss pension planning further with one our Independent Financial Advisors please email: or call Chris at 123 Contracting on 0845 834 0269

The value of investments may fall as well as rise and past performance is not a guide to future returns.

Financial advice is given by a firm of IFA, which is regulated and authorised by the Financial Conduct Authority.