Keep the taxman away from my retirement fund!
September 15, 2008 1:35 AM Subscribe
I'm a freelancer in the UK operating through a limited company. What's the most tax-efficient way to make contributions to my pension?
I know you're not my accountant. Or personal financial adviser. But here's the facts:
- I'm a freelance writer, working in the UK
- I don't have to worry about IR35 stuff
- I pay myself £500 a month salary and take the majority of my income as dividends
- This takes me into the higher income tax band
- I've got a stakeholder pension from before I went freelance, to which I've not contributed since (10 months, not a huge amount of time), and which is what I want to continue to pay into
- I'd want to make contributions worth between £250 - £500 a month
So...
Should I just make direct contributions from the company, do it all via salary, or a mixture of both?
I know you're not my accountant. Or personal financial adviser. But here's the facts:
- I'm a freelance writer, working in the UK
- I don't have to worry about IR35 stuff
- I pay myself £500 a month salary and take the majority of my income as dividends
- This takes me into the higher income tax band
- I've got a stakeholder pension from before I went freelance, to which I've not contributed since (10 months, not a huge amount of time), and which is what I want to continue to pay into
- I'd want to make contributions worth between £250 - £500 a month
So...
Should I just make direct contributions from the company, do it all via salary, or a mixture of both?
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