Contractor Pensions – What are the Tax Benefits?

If you are not currently contributing to a contract pension there is a chance you up paying significantly more tax to HMRC then you need to. Pensions are one of the only true tax breaks that are left in the UK and can play an important role in minimising your taxable income, whether or not you are affected by IR35.

You are able to invest into pensions either personally or by your company and the amount of tax relief can reach as much as 49% so in real terms that means for every £100 you pay £51 and the taxman pays the remainder.