We all know that putting a pension plan in place is important. It’s a key part of any financial plan. Making your pension plan work as hard as possible for you can be challenging. There are several ways that you can get more benefit out of your pension if you are a business owner. Here are just 3 pension opportunities that we have recently advised clients about.

Sole Trader or Limited Company

Your pension may not be something you considered when setting up your business. There’s so much else to think about. However, there’s a big difference in how your pension is dealt with depending on your company structure. A key benefit of operating your business as a limited company is the ability to make larger tax-free pension contributions. This is because as well as your individual contribution, you can decide to let the company make an employer contribution to your pension. As a sole trader you do not have this option.

Pensions and Property

Until recently Limited Companies holding investments like property or shares were not allowed make pension contributions for Directors/Owners.  This is no longer the case and presents an interesting opportunity. A company holding property and generating income from rental income, can now make pension contributions for Directors. This change would now enable them to set up a pension funds.  In turn this fund could buy property and receive rental income and gains free of tax.


Benefit-in-kind (BIK) on employer contributions to PRSAs was removed earlier this year. This has created some different choices and opportunities for business owners when considering their retirement planning. Your employer pension contributions from your company used to be limited by salary and number of years’ service. The removal of these caps means that there are no longer any limits on the employer contributions to your PRSA which may allow it grow far quicker, making the above options even more attractive.

If you’d have any questions on the above or would like to talk to us about your own situation, please just get in touch. We’ve helped many business owners put efficient and rewarding pension plans in place.