Personal V Company Pension Contributions

cabriochris

I have my own limited company and i am a higher rate tax payer.

I want to know if it is best to take all money from my company and make personal contributions, receiving tax relief in my personal tax return at the end of the year to reduce my higher rate tax,
Or make contributions from my company so i have a lower take home pay but reduce my corporation tax and higher rate tax that way.

Has anyone come across this? I beleive the benefits are about the same from each one but i wanted to see if anyone has anymore information.

Thanks

ffacoffipawb

cabriochris wrote: »

I have my own limited company and i am a higher rate tax payer.

I want to know if it is best to take all money from my company and make personal contributions, receiving tax relief in my personal tax return at the end of the year to reduce my higher rate tax,
Or make contributions from my company so i have a lower take home pay but reduce my corporation tax and higher rate tax that way.

Has anyone come across this? I beleive the benefits are about the same from each one but i wanted to see if anyone has anymore information.

Thanks

With company contributions you save employer (12.8%) and employee (11% then 1%) NI, so it is much more efficient.

cabriochris

True but i take a minimum wage salary and then the rest of my pay as dividends so i cant reduce my salary to lower my NI so this would not be applicable to me.