Pensions for freelancers
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.
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.
If you would like to discuss your pension options further with a specialist, please complete the form below or read more on our pensions advice page.