Limited Co - Pensions contributions and low salary ?
I'm not certain about this and would appreciate the benefit of community members wisdom.
One of my clients - a limited company - one shareholder / director is looking at some pension arrangements.
My understanding is, he can get tax relief on personal contributions up to amount of his relevant earnings £7 300 (max £50k) in his case because he also receives a dividend.
Otherwise his company makes a contribution for him, which can exceed the £7 300 stated above up to £50k as long as the work he does is commensurate with that level of pension payment.
But it would have to be a company pension scheme so will need the help of an IFA.
Grateful for feedback.