Pensions for freelancers

As a freelancer and someone who is self-employed, you will have to think about additional things to consider, from taxes to your pension. If you are an employee, it's usually an easy process to get your pension as the employer takes care of it, but you go freelance you will have to do this yourself as you are your own boss. It may be that you've not already made arrangements on the pension front or don't currently maximise the allowances available to invest. It is important to stress that pensions are big news in the post IR35 world. They represent one of the few remaining tax breaks available to freelancers.

You invest money direct from your company bank account, saving not only the income tax that would ordinarily be payable but you also avoid the employers and employees national insurance contributions. The funds then grow in a tax-free pension fund and represent the most efficient way of benefiting from your freelance income. As a freelancer, it is recommended that you make the most out of this tax break that is offered to the self-employed. Putting money away that money for your future will be incredibly beneficial. Additionally now is the best time to do so as its the most tax efficient time to save for your pension fund. 

Other investments that are funded personally, from 'net' income, start at a huge disadvantage by virtue of the initial tax hit needed to get the money out of your company in the first place. There are two distinct options and which is most appropriate will depend on freelancers individual circumstances.

When it comes to setting your pension fund as a freelancer there are various things to consider from the type of pension fund you want to set up to the service provider that you will want to go with. Therefore, take time to research to make the right decision for you.

If you would like to discuss your pension options further with a specialist, please complete the form below and our pension partner will be in touch or alternatively, read more on our pensions advice page.


Freelance Pension Form


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