Company Pension

Guidance note to contractors who own personal service companies

Call 0161 703 2549 or email info@championcontractors.co.uk

General Information

Freelance contractors who own/operate a Personal Service Company (PSC) will receive a letter from the Pensions Regulator advising them of their obligations as an employer to provide a workplace pension for their employees. 

As the sole Director/Employee of your PSC you will not be required to set up a workplace pension.  You must however notify the Pensions Regulator that you do not have any employees apart from yourself and make the necessary declarations. 

You can simply contact The Pensions Regulator at customersupport@autoenrol.tpr.gov.uk quoting your PAYE reference (this will be referenced on the letter) to advise them accordingly.

Champion Advice

Whilst you are not obligated to set up a workplace pension, pensions can offer a very tax efficient way of saving for the future, saving both you and your company tax. For this reason, it may be prudent for you to seriously consider your pension options.

If you are a UK taxpayer you are entitled to receive tax relief on pension contributions of up to 100% of your earnings or a £40,000 annual allowance, whichever is lower. Alternatively your company can make an employer contribution to a pension on your behalf and potentially save corporation tax.

Recent legislation changes have substantially increased pension flexibility to such a degree that Champion strongly advise you to consider setting up a pension, if you have not already done so.

If you would like some bespoke advice on this matter, Champion have relationships with several Independent Financial Advisors who will be happy to provide information to you.

Contact Us

For more information and advice simply request a call back or contact one of our advisors on 0161 703 2549. Alternatively please email us on info@championcontractors.co.uk.