Perfect time for Contractors to start a pension
There couldn’t be a better time for contractors to start a pension, with each pound invested now buying a lot more shares than it would have done a year ago.
Those contractors that are years away from their retirement age have no need to worry about short term volatility as the financial markets will recover in the medium to long term. With the value of the financial markets at the lowest levels seen in years, freelancers investing in pension funds can expect to get so much more for their money.
Pensions are a great way for contractors and freelancers to invest due to the significant tax breaks available. As a contractor outside of IR35 and who works through their own limited company you can virtually contribute your entire income into a pension directly from your own limited company bank account and claim tax relief on the whole amount. Pensions are the one non-contentious method which a contractor can use to mitigate their tax bill.
Indeed, the government has been pushing all workers to invest more in their private pensions, and freelance contractors working through limited companies in particular can divert substantial sums into their pension funds from their pre-tax income.
If you would like to discuss pensions for contractors please contact John Yerou at Freelancer Financials on 020 8421 7999 or alternatively,
please email [email protected]
Other useful pages to visit: contractor pensions
Contact us on Tel: 020 8421 7999
