Well it’s approaching mid October, a time where I get very busy with pensions. From new clients who’d like to reduce their impending tax bill to existing clients who are now starting to increase their contributions, it’s a busy period right up until the ROS deadline in mid-November.

I provide pension solutions for Sole Traders, Partnerships and Limited Companies. The structure can vary and they are all set up slightly differently, however there is a common underlying goal: reducing tax bills while also providing for a better retirement. A large number of my clients are tradesmen, plumbers, electricians, roofers, painters. Their accountants will be currently outlining their potential tax bills and the various options available to them in reducing this.

So how exactly does a pension contribution reduce your tax bill? They attract tax relief, that’s how. For a personal contribution by a person paying the higher rate of tax (currently 40%), there is a generous tax break. Imagine going into a bank and setting up a new savings account. You get your chequebook and your new ATM card. You lodge €60 to start off your account. Now go outside to the hole in the wall. You put in your ATM card and check your balance, only to see €100 showing. Thats tax relief! even at the lower rate of tax (currently 20%) is a similar incentive to the old SSIA savings plans. Sure, you cannot get at the money until retirement but we’ll all need a few bob then too!

On the Company Pension side of things, you can also enjoy those breaks from an employee perspective. However contributions by an employer can offset Corporation Tax while also directing funds towards the retirement benefits of key employees including the business owners themselves.

With agencies with every major pension product provider, I’m here to advise you on you and your business pensions planning needs.