Should I make a pension contribution through my company or directly?

(4 Posts)
littleredsquirrel Wed 02-Apr-14 10:15:03

I am a company director (very small - just me!) I haven't made any pension contribution this year but am a higher rate tax payer. For the first half of the year I was self employed and went into the higher rate tax band through my self employed earnings. I then set up a company and have some dividend income on top of that. If I now want to make a pension payment am I better to pay that from the company (I don't yet take any salary from the company just dividends) or directly as an individual.

Fully appreciate I should have taken advice but that isn't now going to happen before the end of the tax year and so if anyone knows, that would be extremely helpful.

Notmadeofrib Thu 10-Apr-14 20:57:28

Via the company.

BCFPete Tue 15-Apr-14 10:49:45

Yep.

PigletJohn Tue 15-Apr-14 11:08:52

the income tax is the same (none), but if the company pays it, you also save both Employers and Employee NI, which would be due if it the same amount was paid to you as salary and you then made a personal contribution.

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