Hello and welcome. This is Gordon and today on pensions, I want to just talk about a confusion that may exist that sometimes have called me about since my last blog on pensions in the pre-budget alerts. I put out that, so let me just put it this way. So I’m not a financial advisor. I’m not allowed to give financial advice, but you know, I need you to be aware of as a client, as a business owner.
If you’re not a client already that they’re all opportunities that exist to put money aside. If your business is making money and you’ve got some surplus cash, and if you’re running your business, well, that’s what’s going to happen. Then you have the opportunity to put some money aside for a pension.
And the advice we normally give to our clients is we have a salary advice on how much to take out a salary. To really be the most tax efficient salary. Now, when you’re looking at pensions, the salary affects how much pension contribution you as an individual can make. So if we, for example, suggest a salary of 8,000 or eight and a half thousand, then that would be the limit you’d be able to make in each tax year.
If, on the other hand, we recommended 12,000, 12 and a half thousand. Then of course, that would be the limit. Now, you may also have heard that the, there are limits of like 40,000 Vanderweil. Now these are employer’s contributions, and it is my understanding there is no limits to how much an employer other than maybe this 40,000 pounds.
And again, I’m not a financial advisor, so I’m a bit vague on the limits, but that’s why you need to talk to your financial advisor. But just bear in mind your company can, can pay the money out into your pension scheme for you as long as the rules provided that they don’t, you need to sort it out because we were missing out an opportunity.
So, and pensions on the only way to go, by the way, I’ll talk about that in a second, but. Yeah. Talk to you about your financial advisor. If you don’t have one, talk to mine. He’s willing to get involved with you, but you need to get this sorted so that you can put in extra contributions from your company directly into your pension.
And then if you’re in, if the budget changes, then at least you’ve made the contribution before budget. Then I want to get that in quake and I’ll talk to you again about investing on another, on another blog. But this one is, is typically just for some merchant. Okay. Take care. All the best. Goodbye.
