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 FREE initial consultation with one of our friendly and experienced Financial Planners.