Business Pension

robert_harper_2000

Just reading through and wow I have learnt a lot about this topic. I have a pension advisor who has come down a couple of times and is helping me find out abit about them. He has suggested that he if I take a pension pay him via the commission ... although Martin has recommended a few cashback type companies saving in the region of £11,000!!! Although I would be using his advice .... aaaaaargh.

Anyway my question is that as I run my own company would it work out better if the company pays the pension for me? I have tried to read about it but it all seems to be Isa Vs Pension as a individual working for a company. But I would appreciate some advice so I don't make so many mistakes lol
Cheers

Dithering_Dad

You save on corporation tax if you pay via the company, plus you don't have to mess about claiming money back on your self assessment if you're a high rate taxpayer.

robert_harper_2000

That's what the advisor said. My Dad is concerned about Pensions and doesn't want to see me waste money but I think he is abit old skool and knows what happened previously with the all the problems.

I just thought it will be useful for me and my brothers. One of my brothers claims Tax credits and obviously another advantage is that he could put money aside and claim more to help with his family ( he was advised he would be better not working! lol but decided against it ).

But I want more information MORE MORE MORE I've bought Pensions Simplified 2007/2008. But don't think it says much about business advantages

dunstonh

My Dad is concerned about Pensions and doesn't want to see me waste money but I think he is abit old skool and knows what happened previously with the all the problems.

There is no problem with personal pensions. Public perception is very poor on pensions. Largely due to awful media coverage which focuses on the word "pension" without actually making it clear what type of pension they are talking about.

Paying via the limited company is usually the best option. That said, personal contributions can increase your working/childrens tax credits if you are in receipt of those and that could offset the difference plus more potentially.

robert_harper_2000

dunstonh wrote: »

Paying via the limited company is usually the best option. That said, personal contributions can increase your working/childrens tax credits if you are in receipt of those and that could offset the difference plus more potentially.

That's what the advisor sort of suggested about the LTD company.

With the Tax credits what do you mean? My brother isn't a director just simply staff lol if he contributed to a pension then his wages would decrease and his tax credits would increase??

Cheers btw

dunstonh

Pension contributions reduce his income that needs to be declared to the tax credits people. i.e. £1000 gross contribution into a pension reduces the gross income by £1000. That in turn can increase the amount of tax credits being paid because the income is lower.

robert_harper_2000

wow that would really help him out! /Do you know how I could find out the Tax credit allowances etc?

Cheers