Taking profits from ltd company

fakiee

Hi,

I want to setup a pension for myself via my LTD company (I'm a contractor).

This will allow me to add 5k to my pension using profits from the company, which increases my personal allowance limit so I can remove more dividends in the basic tax bracket.

Is this an efficient way to do this? Or is it better use that money in an ISA or high interest rate saver, rather than a pension - this would mean I would hit the Higher rate tax at the normal rate?

Thanks for your help

00ec25

why are you not asking your accountant for this advice? It is bread and butter stuff

do you mean the company makes a contribution to a policy which accepts company funding
or
do you mean you make a contribution from money you have taken out of the company?

your wording "using profits from the company" suggests you are guilty of not separating out "you" the person from "you" the company and therefore your intention is somewhat muddled