Tax-efficient pension contributions

Getting money out of the business without over-paying tax.

Self-employed couples often neglect pension provision altogether. Variable income and no employer scheme to enrol you into make it easy to put off, even though it's one of the most tax-efficient ways to take money out of the business.

How we can help

Where couples usually need support.

A budget that fits you both

Working out a contribution level, flexible where it needs to be, that suits both of your retirement plans and what you can actually afford.

Employer contributions vs. dividends

Company pension contributions can reduce corporation tax and avoid the personal tax and National Insurance that dividends attract.

Ad hoc and one-off contributions

Liaising with your accountant to formulate suitable one-off or annual contributions when profits allow, rather than a rigid monthly figure.

Annual reviews

Keeping you on track year to year, and adjusting contributions as your income and circumstances change.

Competitive charges

Access to very competitive fund and platform charges, so more of what you contribute stays invested.

Illustrative example

What this can look like in practice.

What follows is an illustrative scenario rather than a real client case, showing how the numbers can work.

Case one: Starting from neglected provision

Variable income, no employer scheme, years of nothing set aside

Self-employed and partner-run businesses often neglect pension provision altogether. There's no employer auto-enrolling you, and when income varies year to year it's easy to keep putting it off. We start by working out a contribution level, flexible where it needs to be, that fits both of your retirement plans and what you can genuinely afford, rather than a fixed monthly figure that falls over the first time income dips.

No employer schemeNobody enrolling you automatically
Flexible, not fixedBuilt around income that varies year to year
Both plans consideredMatched to what you both want from retirement

Illustrative example only, based on a typical scenario. Figures are not a quote and individual circumstances vary.

Case two: Employer contribution instead of a dividend

A tax-efficient way to save for retirement through your company

For directors of partner-run limited companies, paying into a pension directly from the business is one of the most tax-efficient ways to save for retirement. A director planned to take an additional £10,000 as a dividend. Taking it instead as an employer pension contribution reduced the company's corporation tax bill and avoided personal dividend tax entirely.

£1,900Estimated corporation tax relief
£0Personal tax on the contribution
£10,000Added to pension instead

Illustrative example only, based on a typical scenario and current tax rules, which can change. Figures are not a quote and individual circumstances vary.

Case three: Ad hoc contributions

A one-off contribution timed with your accountant

Rather than a rigid monthly amount, some clients prefer to make a one-off contribution once year-end profits are known. In liaison with your accountant, we work out what the business can comfortably afford that year, and check whether unused allowance from previous years can be carried forward to make a larger one-off contribution possible.

One-off or annualNot tied to a fixed monthly amount
Accountant-led timingBased on confirmed year-end profit
Carry-forward checkedUnused allowance from prior years considered

Illustrative example only, based on a typical scenario. Figures are not a quote and individual circumstances vary.

Case four: Charges matter too

Lower charges, more of your contribution actually invested

A high charge quietly erodes a pension over decades, and older or poorly-chosen plans are often more expensive than they need to be. We use platforms and funds with very competitive charges, so more of what you and the business contribute stays invested rather than being absorbed in fees.

1.8% → 0.6%Typical charge reduction when a plan is reviewed
Whole of marketNot tied to one provider's funds
Reviewed annuallyCharges checked again at each review

Illustrative example only, based on a typical scenario. Figures are not a quote and individual circumstances vary.

The value of pensions and investments can go down as well as up, and you may get back less than you invested. A pension is a long-term commitment and cannot normally be accessed before age 55 (57 from 2028). Pension contributions are subject to annual and lifetime allowance rules, and carry-forward of unused allowance depends on your circumstances in previous tax years. Tax treatment depends on individual circumstances and may be subject to change in the future.

Want to know what this could mean for you?

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