Own company - Employee or Employers Contributions?

Misty2k

Hi,

Looking for advice please.

I am a Contractor with my own company. I want to make contributions to my existing Personal Pensions but don't know which is best for me? Should I make Employee contributions from my income after I pay myself OR make the contributions from my Company?

Not sure which is most tax efficient.

Thanks


Dee

Freecall

It will be interesting to see what answers you get to this one.

I expect that the received wisdom is that you pay directly from the company thus avoiding NIC's on the money. If like most people in your situation however you only draw a salary equivalent to your personal allowance, you have the upside of getting tax relief on this cash so this has to be offset in the equation.

Also, your contributions are limited to the salary you draw whereas your company's are not.

As I say, interesting to see what comments are forthcoming.

westy22

This question has been addressed in the following thread:
https://forums.moneysavingexpert.com/discussion/4467587

atush

It will depend on how you are paid by your company. As salary? Or as dividends?

there are tax benefits for your company to pay you a pension. There are tax beneifts to you as well. Ask your accountant