Have you noticed that your corporation tax bill keeps getting bigger? But have you ever thought about how a pension can help? If we’re being honest, I’d guess probably not. But there are many ways in which your business could benefit from getting the most out of your pension.
We see a lot of clients who are
either self-employed or directors of their limited company in the office
towards the end of the Tax Year (though they should probably come and see us
much sooner than the end of the Tax Year!). This is often because they are keen
to utilise their allowances when it comes to pensions contributions, but why?
Well, to start with a well-timed personal pension contribution can help limit
the amount of Income Tax you could be liable to – and the same can be said
about Corporation Tax if you were to make an employer contribution through your
company.
How can a pension contribution
help you pay less corporation tax I hear you say? Well an employer pension
contribution into a work place pension is treated as an ‘allowable business
expense’ and can therefore be taken from any pre-tax profits your company may
have. Sounds good, doesn’t it? Of course, there are limitations to this, but
one thing is for sure, something as innocent as a pension contribution could
benefit your business in ways you’d never have thought.
If you would like to find out
more about how your pension can help your business please call our office on
01778 342291 to arrange a no-obligation initial consultation with one of our friendly
and experienced Financial Planners.