How Parker Kelly Financial Services Can Help
Whether you’re just beginning to think about retirement or looking to put a structured plan in place, choosing the right pension is one of the most important financial decisions you’ll make.
With access to the entire market, we can help you:
- Understand the different types of pension schemes available
- Identify tax‑efficient ways to start saving for the future
- Choose a pension that aligns with your risk profile, goals, and budget
- Build a long‑term saving strategy you can stick to
Our advice ensures you start your pension journey on the strongest foundation.
What if I’m self-employed?
Being self-employed or a sole trader means you’re your own boss and that comes with the responsibility of success and failure in the here and now. It also means saving for your well-earned retirement is your responsibility. There are many benefits to setting up a personal pension:
Receive Tax Relief on Personal Contributions
Self‑employed individuals receive tax relief on pension contributions up to 100% of their annual earnings (within the £60,000 annual allowance). Basic‑rate tax relief is added automatically through “relief at source,” boosting every £100 contribution to £125 in the pension.
Reduce Your Tax Bill by Lowering Taxable Income
Pension contributions can lower your taxable profits, potentially reducing the amount of Income Tax due and helping you stay within lower tax thresholds.
Enjoy Tax‑Free Investment Growth
Everything inside your pension grows free from Income Tax and Capital Gains Tax, helping your retirement savings compound more effectively over the long term.
Flexible Contributions to Match Irregular Income
Pensions allow flexible contributions, so you can pay in more during profitable periods and reduce payments during quieter months.
Tax‑Efficient Savings Even With No Earnings
If you have a year with no taxable earnings, you can still contribute up to £2,880 net (£3,600 gross) and receive basic‑rate tax relief.
No Minimum Contribution Requirement
You can start a pension even with very small amounts, as many providers have no minimum monthly contribution. You can also consolidate any small pensions you have.
What if I’m a Company Director?
If you’re a company director, your business can make employer pension contributions that are usually treated as an allowable business expense. Some of the potential benefits are:
Reduce Your Corporation Tax Bill
Pay No National Insurance on Employer Contributions
Enjoy Tax‑Free Investment Growth
Lower Your Taxable Income
Enjoy Tax‑Free Investment Growth
Combine Company and Personal Contributions
When setting up new pensions
The decision is much broader because there’s a wide range of options on the market to choose from.
Personal Pensions: where you make regular monthly payments into a plan usually with a wide range of investment strategies chosen to suit different needs and attitudes to risk. Charges vary.
Stakeholder Pensions: which are a form of personal pension with low and flexible minimum contributions, capped charges and a default investment strategy if you don’t want too much choice.
SIPPs (self-invested personal pensions): which tend to be suitable for larger contributions. They give you a large degree of control over the way your pension savings are invested, but this brings extra risks with it if you’re not an experienced investor and their charges might be higher.
Interested in new pensions in the North West?
Contact us today for a free meeting on where to get started, or check out our social media for more information our advisors can give you the best guidance on where to start.
We cover the following areas in the North West:
We operate throughout the UK. Get in touch with our team to arrange your initial consultation.