Free business tool

Director pension contribution calculator

Employer pension contributions are one of the most tax-efficient ways for a company director to extract profit. Compare paying profit into your pension with taking it as a dividend.

Why employer contributions are efficient

Employer contributions are normally an allowable business expense, so the company saves corporation tax, and there is no income tax or National Insurance when the money goes in. Contributions count towards your 60,000 pound annual allowance, and you may be able to carry forward unused allowance from the previous three years.

Important information

The value of pensions and investments can fall as well as rise and you may get back less than you put in. Pension and tax rules can change, and their effect depends on your circumstances.

The Financial Conduct Authority does not regulate tax, trust or estate planning advice. Tax treatment depends on individual circumstances and may change in the future.

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Q&A

Questions & answers

Is there a limit on employer pension contributions?

Contributions are tested against the annual allowance (60,000 pounds for most people, lower for very high earners), and must be justifiable as wholly and exclusively for the business.

When can I access my pension?

Normally from age 55, rising to 57 from April 2028.

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Talk to an independent financial adviser in St Albans. Call 01727 223251 or send us a message.