If you have your own limited company set up you can take the funds directly from the company into the pension hence not paying any national insurance on the monies.
You can also claim back your cooperation tax as well meaning that for every £119 you add to the pot you can claim back £19 in tax. (assuming the 19% cooperate tax on profits between £1-300,000)
If you earn PAYE then the Gvt will match your tax, ie for someone paying 40% tax then for every £60 put in the Gvt will put in £40 etc
This is what makes pensions more attractive than ISA’s for long term savings as there is immediate growth before the fund does anything. It also needs to be in the right vehicle and so on.
As always don’t keep your eggs all in one basket have ISA’s and other things on the go as well…
You can also claim back your cooperation tax as well meaning that for every £119 you add to the pot you can claim back £19 in tax. (assuming the 19% cooperate tax on profits between £1-300,000)
If you earn PAYE then the Gvt will match your tax, ie for someone paying 40% tax then for every £60 put in the Gvt will put in £40 etc
This is what makes pensions more attractive than ISA’s for long term savings as there is immediate growth before the fund does anything. It also needs to be in the right vehicle and so on.
As always don’t keep your eggs all in one basket have ISA’s and other things on the go as well…
Comment