Company pension contribution

Better since April 2016

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Assuming a £11k salary and balance in dividends scenario, and no non company personal income, calculations prior to 5/4/16 (when dividend tax came in) indicated not much difference in whether to pay a personal pension net privately or gross via the company ('employer').

However, since 6/4/16, it now seems better to advise clients to convert personal to company contributions where practical, as there there appears to be a distinct advantage.

Does anyone disagree?

I suppose similar reasoning for charity donations.

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By JMT21
10th Aug 2016 14:14

I agree. There are scenarios when you wouldn't want dividends to fall below £5K, but only where someone is a higher-rate taxpayer for other reasons.

Personal pension plans often allow contributions from employers so no need to start a new scheme. That's how I pay into my own pension plan.

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