Pensions for your sole trader
The your sole trader Pension Plan
As there are few remaining tax breaks available to Contractors you should grasp the opportunity to invest in your pension if at all possible because not only will it make all the difference to the tax take you suffer, it will also ensure that you put some of your hard earned contract income away for the future.
Contractors can now personally invest (i.e. direct from your private bank account) up to 100% of salary into a pension and still benefit from income tax relief at your highest marginal rate (i.e. the government could be paying £4 for every £6 that you contribute). The only restriction on the amount you can contribute is the £50,000 annual allowance which you must not exceed in the 2011/12 tax year.
The pension advisers at ContractorFinancials can help you to find a personal pension to suit your needs as you may want to opt for a flexible solution that allows you to alter contributions depending on your contracts. It is important to choose a pension provider that offers stability and has a good track record so the advisers will offer guidance as to the best providers for your choice of pension and make sure that the fees are as low as possible to make sure more of your income is invested.
Contractor Financials are Independent Financial Advisors specialising in offering tailored financial solutions to contractors and freelancers.
Call 0845 062 8888 or email CPS@contractorfinancials.com .
The value of investments may rise as well as fall and past performance is not a guide to future returns.