Pension contributions aren’t everyone’s favourite way to save because, unless you’re approaching 55, it means tying your money up for the medium or long term. However, unlike most other investments pensions have some generous up-front tax breaks.
March is a good time to consider making any private pension contributions as you’ll know fairly accurate what your total income for the tax year is and what tax bracket you’ll fall in. This makes the decision of whether to invest and how much to invest in pensions a lot easier.
Contributions are more advantageous for higher rate or additional rate taxpayers as greater tax can be saved.
Employer v Personal
If you are the sole shareholder of a limited company it may be better for your company to make these contributions instead.