|Tel||0333 370 8080|
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|Albany House, 5 Omega Park, Alton, Hampshire GU34 2QE|
Pensions offer one of the few remaining tax breaks for contractors so you can save tax today whilst saving for tomorrow…
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If you’ve not already set up a contractor pension or don’t currently make full use of the allowances available, you could be paying substantial amounts of tax unnecessarily! Pensions are big news and they represent one of the few remaining tax breaks available to contractors, regardless of whether you’re inside or outside of IR35.
As a contractor you can invest money personally from your own funds or direct from your company bank account. If caught by IR35, you save not only the income tax that would ordinarily be payable but also avoid the employees and employers national insurance as well. The amount of tax relief can be as much as 64%, meaning that for every £100 invested, you pay £36 and the tax man pays the rest!
Those outside of IR35 still gain substantial tax savings of up to 50% but in order to exploit these tax breaks and invest for the future you need to ensure that you choose a pension provider that meets certain criteria that are vital for contractors.
To discuss your pension options further, please complete our Pension finder form or call 0333 370 8080 and a member of our Contractor Wealth pension team will be delighted to help you.
Get in touch with the form below to enquire about a contractor pension.
We understand that it is important to avoid companies that levy initial set up costs. This ensures that 100% of your contribution goes into your pension which is crucial given the fact that your employment status may mean that you do not fund the scheme continuously for the rest of your life.
We only recommend providers with the financial strength to remain the steward of your investment throughout your life. Providers who have made a commitment to invest in product development to exploit changes to the rules and new opportunities as they arise in the future.
Any contractor pension we recommend will be versatile enough to allow contributions regardless of whether you continue to work through a one-man limited company, umbrella company, are between contracts or a permanent employee.
We understand how to fully exploit tax rules that are little understood by more general advisors/providers to ensure that you get the best possible benefit from your time as a contractor.
As a contractor, your employment status is inherently changeable; any pension we recommend will give you complete freedom to increase, decrease, restart and cease contributions at will.
As contractor specialist Independent Financial Advisers, we have over 16 years’ experience within our industry, and have helped over 22,000 contractors, like you, to achieve their financial goals.
We work alongside many of the most recognised contractor accountants and umbrella’s including Orange Genie, Freestyle Accounting, Tempo Accounting, CMeasy, Outsauce and many more. If we aren't already working with your accountant or umbrella then we would be happy to speak to them to aid the process of setting up your pension.
We are proud of the award winning service that we offer to our contractor clients and 98.5% would recommend us to a friend. Visit our testimonials page to find out what our clients have said about our services to date.
Even if retirement isn’t high on your priority list at the moment, the tax breaks available make for a compelling argument for transferring part of your invoices to a pension while you are contracting. Contractors benefit from as much as 69% tax relief on contributions to a personal pension so if you are not yet investing regularly then now is the time to start. Flexible pension arrangements allow you to invest heavily when you are in contract and take payment holidays when you are between contracts so are ideally suited to your freelance status.
If you operate via a one man ltd company then you will probably have profits built up in your business accounts that you may be struggling to move without facing a hefty bill from the tax man. Transferring these funds directly from your company in to a pension scheme can be treated as a legitimate business expense and will therefore not incur any corporation tax charges. Whilst retirement may seem like a long time to wait to get your hands on this cash, you can actually release 25% of the fund tax free when you reach age 55 without having to formally retire, so contractors that are nearing this age could get their hands on some of the funds sooner than you think.
A Self Invested Personal Pension (SIPP) offers contractors a hands on approach to building a nest egg. One of the major benefits of a SIPP is that it offers the flexibility to invest in a wide range of investment opportunities including shares, unit trusts, investment trusts, gilts, insurance funds and property, giving you more control over your portfolio. If you are considering a transfer to a SIPP then it is important to be aware of the pros and cons. At ContractorMoney we are able to give impartial, timely advice to contractors on the suitability of a SIPP for your individual circumstances so that you can avoid the problems that can occur.Find Out More
George Osborne announced major improvements in the 2014 Budget as to how and when pension benefits can be accessed. Now contractors will be able to exploit the upfront tax benefits, grow a fund tax efficiently, but then have access to the bulk of the fund at or during retirement. Pension investment will also become a key plank of any estate planning work that clients undertake to gift pensions through the ages. Our advisers can help you to understand the new pension’s landscape so you can plan effectively for your retirement.
It is important to review your pension regularly to ensure it continues to perform in line with your expectations and goals. We are proud to offer an active fund management service which ensures that on a quarterly basis, your individual funds are reviewed in terms of performance compared to benchmarks and alternative investment options available and will notify you of any recommended changes to help ensure you remain on track to meet your objectives. We will also provide an annual statement and valuation together with an in depth performance commentary on your investment. In addition we will revisit your risk profile on an annual basis to help ensure that your investment goals are met.Find Out More