Pension Payments as a sole trader

MartinLowery

Hi there, I have recently become a sole trader and wish to start making contributions to my pension.

My understanding is that the government will contribute an additional 25% of top of any amount I pay in. (So if I pay £1000 in, the government will add a further £250).

Will the government make this contribution automatically, or will I need to tell them about the payments myself (and if so, how).

Do I need a pension plan that is specifically created for sole traders, or can I simply pay it into my existing one that was set up by my previous employer?

thanks
Martin

Katie

Hi Martin,

You don’t need to set up a plan specifically for Sole Traders and should be able to continue paying into your existing plan or you can set up a new one, depending on your needs. The best thing to do would be to speak to a Financial Advisor to see what is the best fit for you.

In relation to your business, you’ll receive tax relief on pension contributions. These are recorded as an expense in your Crunch account.

Our Knowledge article explains a bit more about the tax implications of paying into a personal pension.

All the best,
Katie

MartinLowery

Thank you

If you're a small business owner who loves what they do, there's no better partner than Crunch. We help over 10,000 small business owners from across the UK manage their finances and grow their business. Learn more →

This forum is provided by Crunch. Crunch takes no responsibility and accepts no liability for any content submitted by users of this forum. Terms of Use →