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    • mountaindreams
    • By mountaindreams 15th Sep 17, 11:01 AM
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    mountaindreams
    Self-employed vs limited company for pension
    • #1
    • 15th Sep 17, 11:01 AM
    Self-employed vs limited company for pension 15th Sep 17 at 11:01 AM
    Hello,
    I am looking at starting to pay into a pension again. I am currently self-employed (sole trader) however was wondering if it is worth going down the limited company route from a pensions point of view.

    I did have a limited company before I had my kids so I do have experience of running one. When I started working again after having my kids I decided to start off as Sole trader for simplicity and as I am working part time I didn't think there were significant advantages (certainly tax wise) of going limited company again.

    How do pension payments work via limited company? Do both I and the company pay into it? I believe that payments the company makes would reduce my corporation tax liability.
Page 1
    • dunstonh
    • By dunstonh 15th Sep 17, 11:06 AM
    • 89,576 Posts
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    dunstonh
    • #2
    • 15th Sep 17, 11:06 AM
    • #2
    • 15th Sep 17, 11:06 AM
    however was wondering if it is worth going down the limited company route from a pensions point of view.
    it's usually worth going limited when you earn above £35K. An accountant will know the figure more accurately than me.

    How do pension payments work via limited company? Do both I and the company pay into it?
    All retail pensions can accept personal or employer contributions. So, the pension itself will be no different. However, a limited company would use employer contributions only where its own company shareholding director.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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