If you run your business through a limited company and have made a profit that has not been declared as a dividend, we would recommend that you consider making a contribution to a pension.

Contributions to a pension, up to the £50,000 limit in any one input period, can form a deduction from the profits chargeable to corporation tax in the period in which the payment is made. Contributions within the limits do not give rise to tax or national insurance on the individual concerned, therefore making it an attractive method to extract funds from a company.

As part of our service at Nimbus Accounting, we regularly discuss the options available to our clients to help minimise their tax liability. If a pension contribution is something you are interested in, we recommend speaking to an independent financial advisor to ensure you get the best product to suit your current and future needs. If you would like us to help with this or any other tax matter, please give us a call on 01273 782 742.