We have a simple message for you regarding company and director pensions. They remain one of the most tax efficient ways for business owners and company directors to save for retirement.
As well as providing for retirement a pension for a director or business owner is a way of extracting profits from the business without paying tax or National Insurance. You can’t spend that money right now (unless you are about to retire) and you will get taxed on the income when you do take it, but at least the money paid in is for your benefit, unlike most other business expenses.
People sometimes say that their business is their pension. This shouldn’t be the case. It should be seen as the vehicle that will fund their pension.
For more on this subject why not contact us on 01454 501 959 or use the contact form.