Ladies, we need to talk about pensions!

With the end of the tax year on the horizon, now is the perfect time to refresh your company’s finance plans and maximise the available tax-saving opportunities. This will not only allow you to extract profit while keeping one eye on tax efficiency, but will also improve your retirement prospects – and that of your employees!

Maximising your company’s tax efficiency

There are several ways to take profit or income from your business while reducing your company’s liability to Corporation Tax, Income Tax and National Insurance contributions (NICs). One major way of doing this is to divert your company’s pre-tax profits into a personal pension. This also helps you with long-term planning and retirement preparation and, unlike personal contributions, there’s no limit on how much a company can pay into a pension scheme.

You could also consider taking dividend income instead of salary to avoid NICs (plus, the first £2,000 is Income-Tax-free!). Many directors take an income from a combination of salary and dividends, supplemented by pension contributions – a financial adviser can help you find the right balance.

On a personal level, you could also take advantage of unused tax allowances from previous years. Even if you’ve used up your annual allowance, you may have an opportunity to invest more by 5th April, by making the most of unused annual allowances from the previous three tax years. This could, for example, allow you to make a significantly larger pension contribution in a single tax year.

Increasing your financial resilience

We often hear that women are at a disadvantage financially, with the gender pay gap and pensions gap working against us. But another key issue is the fact that many women are still failing to view – and, therefore, protect – themselves as key earners.

According to a survey from Canada Life, women are far less likely to prioritise protection insurance (for example: life insurance or critical illness cover), with more than half of all women aged between 25 and 45 not having insurance that could help to protect them against loss of earnings.1 The research also shows that half of women at the height of their careers have never considered their families’ protection needs. This is a shocking figure when you consider that we account for nearly half of the UK workforce, and contribute huge amounts to our households.

Neglecting protection insurance might be down to affordability or a belief that ‘it won’t happen to me’, but doing so is vital in protecting you, your business and your loved ones. International Women’s Day is just around the corner and I want to see more women protecting their financial interests!

Do you want to meet like-minded women in business?

I am looking at running an event in May that will be hosted by women in business for women in business. It will be an opportunity to network with like-minded businesswomen, and also gain an insight on financial planning, pension planning, legal information and more from specially selected key speakers.

If this would be of interest, please register your interest via this weblink: <LINK>

Contact me today

Wherever you are on your business journey, it is important that you’re getting the right advice on planning for a financially secure future. Careful planning can make a real difference to you and those you care about, and can give you the freedom to adapt as your personal circumstances change. If you have a question about tax efficiency or income protection, or would like more information about my services, please contact me today!

Samantha Kaye
Chartered Financial Planner | Adviser

Wellesley House, 50 Victoria Road, Burgess Hill, West Sussex RH15 9LH
01444 849809


1, March 2018

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Author: Samantha Kaye
Author: Samantha KayeChartered Financial Planner, Adviser