Director Pension Contributions
As a director of a limited company, you can contribute pre-tax company revenue to your pension plan, and your company will receive relief against corporation tax.
​
Pension contributions are one of the few remaining significant tax breaks available to companies. Moving money from your limited company into your pension isn't just a great way to save for your retirement - it's also a highly tax-efficient way of using profit from your business.​
"Get in touch with Askaig Newington to speak to our financial planning team.
Our experienced professionals have a wealth of knowledge and a shared commitment to providing the best possible service to our clients.
​
Whether you're looking to secure your retirement, grow your wealth, or navigate a complex financial situation, we're here to provide personalised advice."
How much can my company contribute to my pension?
​
There are limits to the amount that you can pay into your pension whilst still receiving tax relief.
​
For contributions from your limited company, the maximum amount you can pay in is £60,000 per annum for 2023/24 (although individuals with personal earnings of more than £240,000 may have a reduced allowance).
​
If you have made a large profit and wish to contribute more than £60,000 to your pension, you may be able to benefit from the 'carry-forward' rule. This allows you make use of any unused allowances over the previous three tax years.
​
Speak to one of our financial planners to find how much you could contribute.
How much tax could I save?
​
Pension contributions are an allowable business expense, which means that they are made from pre-tax company profits.
​
The main rate of corporation tax is now 25%, having risen from 19% in April 2023.
This means that, for companies who pay tax at the main rate, for every £100 that's invested into a pension, the company will receive a corporation tax reduction of £25.
​
But the tax savings are even greater if you would have otherwise taken your pension contribution as a dividend. That's because, in addition to corporation tax, you would also pay income tax at the dividend rate.
Book a meeting with a financial planner
Our initial meeting comes at no cost – it’s an opportunity for us to get to know each other and allows us to gain an insight into your current situation, goals, and objectives.
Our friendly financial planning team bring a wealth of experience and expertise. All our discussions are confidential, and you will never be asked to commit or sign up during our first meeting.
How to get in touch
6 Wrotham Business Park
Barnet
EN5 4SZ
What happens to my money once it's invested into a pension?
​
A pension plan is simply a tax wrapper that allows you to invest in other assets.
​
Most individuals choose to invest their pension in a professionally-managed portfolio of shares and bonds, in search of long-term capital growth.
​
However there are a wide range of assets that can be held in a pension, including cash accounts, NS&I products, directly held shares, and commercial property.
​
Our financial planners will recommend a suitable pension provider after discussing your objectives, risk profile, and whether you wish to hold any specific type of assets.
All information It is based upon our current understanding of current legislation and HMRC guidance. While we believe this interpretation to be correct, it cannot be guaranteed that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Thresholds, percentage rates and tax legislation may change in Finance Acts and bases of, and reliefs from, taxation are subject to change and their value depends on an individual’s personal circumstances.
​
​A pension is a long-term investment not normally accessible until 55 (57 from April 2028).
Investments carry risk. The value of your investments (and income from them) can go down as well as up, and you may get back less than you invested. Past performance is not a reliable indicator of future results. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.