Many owners of private limited companies (LTD) do not take advantage of one of the most tax-efficient solutions available in the UK.

Pension contributions paid directly by the company.

Why is this solution tax-efficient?

The contribution can be treated as a company expense and reduce Corporation Tax.

It is not subject to Income Tax or National Insurance, unlike standard remuneration.

The funds are paid into a private pension scheme.

It is often more advantageous than taking a salary or dividends.

In practice, this means the company can pay funds directly as an employer pension contribution instead of paying them out as take-home income.

This allows you to combine future planning with tax efficiency.

Important

As an accountancy firm, we advise on the tax and accounting implications of such contributions.

In accordance with current regulations, we do not recommend specific pension products or individual investment strategies.

If you run an LTD and want to understand how such contributions affect your company’s tax, we can analyse your situation from both a tax and accounting perspective.