It will not come as a surprise, but one of the most frequently asked questions is 'how does my company save tax?'

A lot of people believe that spending your hard earned profits on new assets is one of the best ways to do it. Whilst it is true that if you need a new van, server etc. the timing of this purchase can be a very important tax planning tool, spending money on unnecessary new assets is pure folly, as yes, you save tax (say at 21%) but the remainder of the money has been spent for no real reason.

Pensions, however, remain one of the most effective tax planning tools, whilst also helping to increase your wealth. Indeed having a good sized pension pot also then provides the beneficiary with further important planning opportunities.

However, it would appear that years of abuse by large numbers of 'fat cat' high earners have forced the government to change the rules on pensions tax relief effective from April 2011. That said there remains a small window of opportunity to maximise contributions and therefore maximise the tax relief available to you.

To discuss how you and your company can benefit from pension contributions contact us now.