At Chadwicks, we pride ourselves on going beyond basic compliance work by proactively identifying ways for our clients to improve their financial efficiency. One such example comes from our work with a client in the environmental consulting sector, who approached us to complete his year-end accounts and review his overall financial strategy.
As part of our detailed assessment, we looked at how he was drawing money from his business and whether there were any opportunities to reduce unnecessary tax. During this review, we noticed that his pension contributions were significantly below the available threshold. Although he had the capacity to utilise the full £60,000 annual pension allowance, he was only contributing around 50% of this amount.
To help him make the most of his allowances, we advised increasing his pension contributions to the full threshold. By making the additional 50% contribution, we were able to help him:
Withdraw more money from his business in a tax-efficient and largely, tax-free way
Reduce his corporation tax liability, as pension contributions are treated as an allowable business expense
Strengthen his long-term personal financial planning through an increased pension fund
This strategic adjustment not only delivered immediate tax savings but also enhanced his long-term financial resilience, a key consideration for entrepreneurs in the ever-evolving world of environmental consulting.
By taking a proactive approach, the team at Chadwicks ensured our client was maximising available allowances, keeping more of his hard-earned income, and positioning both his personal and business finances for future success.
If this sounds like something you think you could benefit from, get in touch with us today!
Contact us on 01789 773182 or 📧 email info@chadwickaccountants.co.uk to find out how we can help.
