Retirement Pensions

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So, your accountant has told you that don’t form a limited company because it’s more tiresome to run /manage and guess what? I am doing you a favour he says “it’s gonna cost you more money!
Well, in this series of articles I am going to tell you why some of the benefits of a limited company.
Let’s forget the tax (crucial) let’s forget the balance sheet (crucial) lets forget the advertising (crucial) and concentrate (instead) on something else.
So you want the best deal for you at retirement? So do I and so does everyone else. The funny thing was when I was young, very young and growing-up pensions meant nothing to me. Now that I am… well, over 50 the goalposts have changed. So, how do you maximise your benefits?
One way, if self-employed, is to form a limited company (limited by shares) and by becoming a director, you are then a paid employee of the company.
“So what!” you may say. Well, as a director of a limited company and therefore a paid employee of the company, you pay class 1 national insurance and so in this way qualify for a better and improved pension than if you trade as a self-employed individual, paying class 11 national insurance. Guess what? You also, actually pay less into the pot. Unfair, I would agree. However, I do not make the rules but instead just apply them.

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