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Pension payments for LLP member

Best method?

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Hands-up in advance - pensions aren't my strong point. 

A client of mine is about to be made an equity partner in a LLP. She wants to make a 'salary' sacrifices to her pension. How does this work in tax-wise? 


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By MJShone
11th Feb 2020 08:53

Is she an employee (ie PAYE) who's simply going to be badged a partner? If that's the case, then she can salary sacrifice if the LLP (her employer) agrees. The pension contributions are then employer contributions. Both employee and employer save NI. However, if she's a self-employed member of the LLP, she can't salary sacrifice - any contribution is hers, not the LLP's. All she's doing is asking the LLP to divert some of her profit share to her pension.

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Replying to MJShone:
By atleastisoundknowledgable...
11th Feb 2020 09:01

Thank you - that's an excellent answer that covers both sides (I'm currently unaware of which sort of partner she will be).

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