Husband & wife company (both active in the company) taking £5460 each. Company pays profits out as dividends. neither director is 40% taxpayer. Is there any benefit in the company paying in to the directors personal pensions instead of individual contributions?
John Nicholls
Replies (1)
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That depends
It is worth looking at. The small companies rate of corporation tax is higher than the basic rate of income tax.
If they are 40% taxpayers then it's better to pay their own contributions, but then you must take note of wheere the money comes from to pay them ie if there is a NI cost.