Just wanted to find out what sort of strategies are being used for pension distributions from Ltd Company.
As I understand it from doing some research and speaking to my accountant (NLUK disclaimer :-)), its possible to claim relief
on Corporation Tax at a rate of 19% for paying in an amount up to £40,000 per year
So a brief illustration if one pays in £10,000 in one year (provided that the company does not show a trading loss as a result of that distribution) then corporation tax
is reduced for that year by £1,900.
I have a personal pension but its been sitting there for a while increasing year by year based on various fund investments. So I'd like to start to give it a bit more love.
My accountant has suggested I go and speak to a pension provider, but before I do this, I'm assuming this is already being done in the contracting community as a good way of offsetting Corporation Tax.
Three questions really..
1. What sort of strategies do others have in place for provision of pension from ltd?
2. If one hasn't done this is previous years, is it possible to carry an allowance over from previous years?
3. What does the community think of pensions, given previous governments treatment of them over the years?
As I understand it from doing some research and speaking to my accountant (NLUK disclaimer :-)), its possible to claim relief
on Corporation Tax at a rate of 19% for paying in an amount up to £40,000 per year
So a brief illustration if one pays in £10,000 in one year (provided that the company does not show a trading loss as a result of that distribution) then corporation tax
is reduced for that year by £1,900.
I have a personal pension but its been sitting there for a while increasing year by year based on various fund investments. So I'd like to start to give it a bit more love.
My accountant has suggested I go and speak to a pension provider, but before I do this, I'm assuming this is already being done in the contracting community as a good way of offsetting Corporation Tax.
Three questions really..
1. What sort of strategies do others have in place for provision of pension from ltd?
2. If one hasn't done this is previous years, is it possible to carry an allowance over from previous years?
3. What does the community think of pensions, given previous governments treatment of them over the years?
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