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help,save privately or via ltd company

krissy08
krissy08 Posts: 389 Forumite
Part of the Furniture 100 Posts Name Dropper Combo Breaker
in Pensions, annuities & retirement planning
Hi,
I run my own limited company from which I draw a basic salary and dividends,and have decided to start saving a pension. I have just read the article on pensions, I am still confused tho, am I better off saving privately or involving the company in some way?
Thank you

Comments

  • dunstonh
    dunstonh Posts: 120,026 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Typically payments from the company.

    in 2012 you the company will have to pay into the pension anyway (minimum 3%) so you may as well comply now as well as obtain the other usual benefits.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • averageguy11
    averageguy11 Posts: 421 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    From 2012 or people who own ltd companies wil hav to contribute 3% into a pension???
  • dunstonh
    dunstonh Posts: 120,026 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    averageguy11 wrote: »
    From 2012 or people who own ltd companies wil hav to contribute 3% into a pension???

    Yes. The individual can opt out though. However, those small limited companies that employ 1 or 2 people have a 3% pension contribution coming for those employees.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • kerfootuk
    kerfootuk Posts: 77 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Am I right in thinking that pension contributions by a ltd company are directly offset against the corporation tax liability but obviously do not have the tax concession.
  • averageguy11
    averageguy11 Posts: 421 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Ya..thts as i understand it..in tht u r reducing yur net profit
This discussion has been closed.
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