Reducing Corporation Tax - how ?

[dude69]

There are better ways to save for your old age, try an ISA, although there is no tax relief on the capital they will perform at least as well and continue to grow after you have retired and so continue to grow your income.

Depends how much you earn. I use my ISA allowance of £7k in full, and have money left to spare for the pension. I would certainly say use the ISA allowance first.

[Hiram King Of Tyre]

The other thing with a pension is that you can draw out a lump sum of 25% tax free (until they change the rules!)

Do you only pay PAYE tax (Not NIC) on a pension too?

Or, retire to Cyprus and only pay 5%!

[pisces]

Depends how much you earn. I use my ISA allowance of £7k in full, and have money left to spare for the pension. I would certainly say use the ISA allowance first.

Can you invest profits in an ISA and then sign it off on your tax forms as pension?

[max]

Can you invest profits in an ISA and then sign it off on your tax forms as pension?

Nope.

You're clutching at straws now.

Have you spoken with your accountant? They've generally done some research into the subject.

[ASB]

Can you invest profits in an ISA and then sign it off on your tax forms as pension?

Of course you can

But you shouldn't.

Regarding the pension it makes little difference whether it's company or personal if:-

- Basic rate taxpayer
- The source of the funds is dividends

If higher rate taxpayer or PAYE then it is probably better in most cases for the company to make gross contributions.

[LordF]

The Mrs & I use our maximum ISA allowances, paying on a monthly basis into a mixture of funds (not all stock market based). Also contribute via Ltd Co into a pension plan. Will be increasing the premiums from next month (by 80%).