48 & No Pension Plans

dunstonh

We put a basic wage of £12500 through for both me and my wife.
The employer (my company) pays 3% and I pay 4%

You shouldn't be doing it that way as its not optimal and its not required.      Effectively, you have been set up as if you are an employee.   Shareholding directors are exempt from that.  

The only contributions you should be making are employer contributions. Not employee.

If I increase the employer contribution, would that have implications for tax etc as I am reducing the potential profit for the year

Exactly.  you are reducing your corporation tax and not suffering income/dividend tax doing it with employer contributions only.     

xylophone

https://www.1stformations.co.uk/blog/company-director-pension-contributions/#:~:text=As a company director, you,private director pension as well.