“Pension contributions are one of the most effective, HMRC-approved ways to reduce tax while building long-term wealth. At Holland & Co, we integrate pension planning with your wider tax and cash-flow strategy — helping you save tax, boost retirement funds, and extract profits efficiently.”
— Nigel Holland, Chartered Accountant
Pensions & Tax Planning
Pension contributions remain one of the most effective, HMRC-approved ways to reduce tax while building long-term wealth. Used well, they can cut Corporation Tax and Income Tax, lower National Insurance in some cases, and accelerate retirement saving—without complicating your affairs.
We work alongside a trusted Independent Financial Adviser (IFA) to review your pension arrangements, structure contributions for maximum efficiency, and integrate them into your wider tax strategy and cash-flow plan.
Why use pensions as a planning tool?
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Reduce Corporation Tax with company-funded contributions for directors.
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Reduce Income Tax with personal contributions (and claim higher/additional rate relief where due).
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Potential NIC savings via salary sacrifice arrangements.
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Ring-fence assets in a tax-advantaged environment with tax-free growth and usually tax-free lump sum within limits.
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Align contributions to profitable periods and year-end timing for maximum effect.
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Who this helps
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Company directors seeking efficient profit extraction.
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Sole traders and partners wanting predictable, tax-efficient contributions.
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Business owners planning retirement, succession or a future sale.
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Higher and additional rate taxpayers looking to reclaim marginal reliefs.
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Common strategies we implement
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Company contributions for directors
Paid by the company and generally deductible against profits, subject to “wholly and exclusively” rules and appropriate remuneration planning. -
Personal contributions with relief
Claim basic rate at source, with higher/additional rate relief via Self Assessment where eligible. -
Salary sacrifice
Exchange part of salary for employer pension contributions to save employee and employer NICs, often boosting the net benefit. -
Timing around year-end
Align contributions with Corporation Tax and personal tax planning to optimise allowances and cash flow. -
Carry-forward of unused allowance
Use available unused annual allowance from the prior three tax years (subject to eligibility) to make larger, efficient contributions.
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Key allowances and rules (at a glance)
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Annual Allowance – standard allowance applies; contributions above this may trigger an annual allowance charge unless carry-forward is available.
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Tapered Annual Allowance – may reduce the allowance for higher earners.
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Money Purchase Annual Allowance (MPAA) – may apply if you’ve flexibly accessed pensions.
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Lifetime limits & benefit crystallisation – ensure contributions align with evolving rules and your long-term withdrawal plans.
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(We’ll confirm the current figures and your eligibility as part of the planning work.)
How we work with the IFA
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We model contribution levels, tax impact and cash-flow timing.
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The IFA recommends suitable pension products and investment strategy (they are authorised and regulated for this).
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Together, we implement a practical contribution schedule and keep it under review each year.
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Our process
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Initial discussion – your goals, income mix, profit outlook and timelines.
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Tax modelling – company vs personal contributions, NIC impact, cash-flow profile.
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IFA consultation – product and investment recommendations.
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Implementation – set up or adjust schemes; agree contribution timetable.
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Review – revisit annually (or at key events) to keep the plan efficient and compliant.
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Get personalised advice
Email nigel@hollandandcompany.co.uk or call 0151 420 6666 to arrange a pensions & tax planning review. We’ll provide clear numbers, options and next steps, and coordinate with our trusted IFA to implement the right solution for you.
Learn more on our Pensions page | Back to Services