One of the main areas of Chancellor’s service to our clients is advising companies on pension planning.
Even with Corporation Tax rates having reduced in recent years, pension contributions can still be a very attractive way of reducing a company’s tax bill.
Pension contributions are paid gross to the scheme by the employer and this will be treated as a business expense to be deducted from profits but it is worth bearing in mind that tax relief is granted at the discretion of the company’s local Inspector of Taxes. Tax relief on larger pension contributions (£500,000 or more) may be spread over two to four trading years.
The main rate of Corporation Tax for the year starting 1 April 2019 is 19%.
The rules related to pension arrangements were changed significantly as a result of Pensions Simplification legislation coming into effect from 6th April 2006, but that doesn’t mean that they are simple for the lay person to understand, especially as subsequent legislation has been introduced. Members of the Chancellor advisory team are all authorised to advise on pension planning, are all Fellows of the Personal Finance Society and are required to complete a minimum of 35 hours compulsory Continuing Professional Development (CPD) each year.
If your company has an existing company pension scheme or you are considering putting one in place for the first time, why not have a no obligation chat with one of our Chartered Financial Planners