Rules For Paying Your Pension Contributions Through Your Company #AskAMS

In this edition of #AskAMS we asked the rules surrounding pension contributions from your company. Peter Bromley ACA was more than happy to give his expert advice.

Using your Company to fund your pension contributions can be the simplest and most tax efficient method of funding your pension, and from April 2016 you will get a 6% tax advantage by paying through your Company.

So long as your Company has available profit it can pay up to £40,000 (the Annual Allowance) into your pension in the current tax year and receive tax relief on the contributions. Also, if your Annual Allowance has not been used up in the previous three years, you can use it up by making higher contributions in the current tax year.

If you are an owner/director of your own Company, you ought to be thinking seriously about using your Company to fund your retirement package. Consulting a professional Financial Advisor is vital to ensure you make the right decisions.