Company pension or personal pension with company contribution?

[colinrobinson]

back in 1993 i had a company pension scheme(now dormant due to that company being dissolved). Ive been using an umbrella since and neglecting my pension contributions a v bad idea but ... I have now gone back to ltd company for obvious reasons. my new accountant is advising a company scheme as opposed to a personal scheme (while advising confirmation with an IFA). but my IFA is suggesting a personal scheme is fine as long as the company is making the payments the payment still qualify as a legitimate business expense to reduce corporation tax liability. there are apparently limits about how much can go into a personal scheme ie up to salary, but we usually keep salary to a minimum level dont we :-)

so do company schemes still exist as the best vehicle to use up to the current limits of 50k ?

seems like I might need a better IFA any suggestions/recommendations ?

[northernladuk]

Well you could try doing a search first. I think you can imagine we have discussed pensions to death.

[captainham]

http://www.nixonwilliams.com/images/...tributions.pdf

[colinrobinson]

yeah yeah of course i did but didnt find any direct comparisons between company and personal schemes ?

[colinrobinson]

http://www.nixonwilliams.com/images/...tributions.pdf

Thanks exactly what i was after.

Regards

[Platypus]

Well you could try doing a search first

Ah, the NLUK auto-responder is working fine I see.

[Contreras]

http://www.nixonwilliams.com/images/...tributions.pdf

Interesting comment in that article:

Personal contributions are generally more tax efficient than company contributions, although this is normally only by about 0.5%.

Can anyone explain what the reasoning behind that advice is? I can't immediately see why, with both CT and basic rate income tax at 20%, there would be any difference in the tax take.

[northernladuk]

yeah yeah of course i did but didnt find any direct comparisons between company and personal schemes ?

Even though your exact question (in fact both of the) are discussed in detail in threads like this??

Contreras I believe the explain the reasoning in this thread as well so double bonus. It is an old one though so numbers might have changed slightly

http://forums.contractoruk.com/accou...h-company.html

[northernladuk]

Ah, the NLUK auto-responder is working fine I see.

To be fair I do normally post the link but this one was so lazy I CBA.

[xoggoth]

Do check rules about transferring company pensions/annuities before you take that option. Much more difficult than with personal ones, or used to be.