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Doesn't the maximum dividend you can take without paying tax increase if you personally make pension contributions?
That is correct, your basic rate band is extended by the gross value of the contribution. For example, if you pay in £800 net, the gross contribution is £1,000. The basic rate band extends from £32,010 to £33,010 (based on 13/14 rates).
Note that this is restricted to your earned income. If you therefore have a salary of say, £7,000, it would not be wise to contribute in excess of the salary level. Company contributions above this amount are ok however.
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