Contractor Pensions

When you become a contractor, you can enjoy the freedom that contracting brings while also taking responsibility for your own retirement and protection plans.

We have teamed up with the specialists at ContractorFinancials to offer you our JSA Financial services so you can now benefit from independent financial advice to help you make the most of your time contracting.

Benefits for You, and not the Taxman

Given the constant challenge of running a business, contractors will dream of early retirement.

The hard truth is that, with state provision woefully poor, its down to you to build up nest egg for your retirement. With the demise of the final salary schemes, as contractor, at least you are no worse off than most full time employees.

The good news is that there are very compelling tax planning opportunities now associated with pension investment. These can enable you to slash the proportion of your corporate and personal income that goes to HMRC.

Personal Contributions

Contractors can now personally invest directly from your private bank account up to 100% of your salary into a pension scheme. You still benefit from income tax relief at your highest marginal rate, so the government will be paying £4 for every £6 that you contribute.

Company Contributions

Business owners can choose to draw a tax efficiently low salary to help reduce their National Insurance contribution. This limits the scope for personal investment, but this need not limit your ability to reduce company and personal tax bills by making a pension contribution.

Thanks to 'pensions simplification', you now have massively increased scope to invest, if you get the company to fund the scheme on your behalf. 'Employer' contributions can be as much as £50k per annum, representing a very tax efficient method of transferring money from company into personal hands. In good trading years, a hefty corporation tax bill could potentially be reduced to nothing.

Your pension can also become a central plank of your business, by exploiting the freedom to own commercial property. You can hold business premises via a Self Invested Personal Pension (SIPP) with the pension in turn charging your company rent, helping to inflate the size of the pension pot even further.

Subject to minimum ages, you can now invest into the pension to cut your tax bill today. You can withdraw 25% of the fund tax free immediately, and yet not even formally retire.

Where can I get more information?

We have teamed up with ContractorFinancials, which is an IFA, to provide our JSA Financials service. ContractorFinancials will be happy to recommend a number of investment opportunities to suit your individual requirements.

ContractorFinancials offers consultations via e-mail, phone or in person and pride themselves on their specialised knowledge of specialised contractor pensions. As Independent Financial Advisors, ContractorFinancials is offers advice on your existing investments alongside the JSA Financials scheme, and will be happy to offer you an unbiased opinion.

Call us on 0845 202 4534 or email pensions@JSAfinancials.com

Financial advice is given by ContractorFinancials, which is a trading name of ContractorFinancials Ltd and is regulated and authorised by the Financial Services Authority.

The value of investments may rise as well as fall and past performance is not a guide to future returns.

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