02/06/2026
Did you know the annual allowance for pension contributions can be as much as £60,000 per tax year? Tax relief is available on this contribution!
For Directors receiving employer contributions, the full £60,000 is available in spite of drawings with full corporation tax allowable as a business expense. For employees, the allowance is 100% of your taxable earnings (capped at £60,000 whichever is lower). Tax relief at basic rate is available at source. For higher and additional rate taxpayers, you can claim further tax relief up to your marginal rate via your self-assessment tax return.
Any unused allowances from the three previous tax years may also be carried forward in some circumstances.