Our client Sarah had spare cash lying around and was wondering where she could put it to make her money work harder for her.
She wanted a long-term financial plan and was in the ‘build’ stage of her financial planning. To boost the chances of her spending stage she decided to make a lump sum contribution to her personal pension.
Sarah runs her own marketing company and had made some decent profits that year which of course meant she had a hefty corporation tax bill.
Sarah contacted us to make a £5,000 contribution to her personal pension as she knew that investing her money for the long term was better than leaving it in the bank, but what Sarah was even more thrilled about was that her contribution was then deducted as a business expense which made a great difference to her overall corporation tax liability.
It was a win win for Sarah! She reaped the benefits now of her pension contribution but will also later on In retirement too.
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