Skip to content
SJD Accountancy
Join Now
Join now
Sorry, we're closed

Lines open Monday from 08:00 - 20:00

  • Contractor Services
    • Our Services
      • Accountancy Packages
        • Compare Services
        • Essential
        • Premium
        • Elite
      • Company Formation
      • Switching Accountant
      • Tax & Audit Services
        • Self Assessment
        • Questionnaires
      • Insolvency Services
      • IR35 Contract Reviews
      • Special Offers
    • Partner Services
      • Umbrella
      • Business Insurance
      • Contractor Mortgages
      • Wealth Planning
      • Health Insurance
      • IPSE Membership
      • Rewards
  • Contractor Resources
    • Contractor Library
    • Top Guides
      • The Contractor’s Guide
      • Limited or Umbrella. The Ultimate Guide
      • Complete Guide to IR35
    • Contractor Tools
      • Limited Company Name Generator
      • Compare Your Day Rate
      • Gender Pay Gap Tool
    • Contractor Calculators
      • Take home pay
      • IR35 calculator
    • Becoming a Contractor
      • Permanent to Contracting
      • How to contract
      • Contractor earnings
      • Contracting in the UK
      • Umbrella take home pay
      • Limited or umbrella
      • Contracting through an umbrella
      • FAQ’s for new contractors
    • Existing Contractor
      • Expenses
      • Taking money out your company
    • Financial Advice
      • Business banking
      • Contractor and business insurance
      • Contractor pensions
      • Contractor mortgages
      • Off-Shore
    • Understanding Legislation
      • IR35
      • Flat Rate VAT scheme
  • About
    • Company
      • About SJD
      • Contact us
      • Careers
      • Terms of Business
      • Terms & Conditions
      • Privacy Policy
    • News
  • Clients
    • Refer to SJD
    • SJD Online
Search Search

SJD Accountancy > News and Opinion > Uncategorized > Planning for the Future as a Contractor

SJD Accountancy > News and Opinion > Uncategorized > Planning for the Future as a Contractor

Planning for the Future as a Contractor

Author
Written by:Digital
Uncategorized
2 minutes
Published: December 9, 2018 Updated: June 11, 2019
  • Twitter
  • Facebook
  • LinkedIn
  • Email

Retirement seems like a long way off when you’re hard at work building your business, but it’s never too early to start preparing your money for the future. Saving for retirement is an important life decision which you will undoubtedly consider throughout your working career. Recent data from Demos has revealed that contractors and freelancers aren’t saving for the future and only 17% of respondents surveyed reportedly have a plan.

At SJD Accountancy, we personally believe it’s in a contractor’s best interests to be aware of the options available when it comes to planning for the future. Below we’ve put together some simple ways to help you start thinking about money and planning for the future.

Set up your pension as soon as possible

If you haven’t already, it’s important that you make this your priority. With no employer to top up your contributions, as a contractor or freelancer you will be responsible for the bulk of your savings.

As the sole director of your limited company, you can either pay your pension through your personal or business account. If you make contributions through your company, this will be classed as an employer contribution and can be claimed as a legitimate business expense.

Contracting through your limited company is arguably the best way to operate and there are many reasons to support this. Just one of the ways you can increase your tax efficiency is to contribute to your pension through your company.

The annual allowance for pension contributions for which you can claim tax relief is currently set at £40,000 or 100% of your earnings per year (depending on which is lower). You can also carry forward any unused allowances for the past 3 years to make the most of this relief.

Take control of your savings

Keeping your spending in check month on month and being aware of what’s going in and out of your account can make a big difference to your financial position over time. If you’re new to the industry and your earnings differ wildly, committing to a small monthly amount could be the safest way of keeping you on track without being out of pocket in the short term. To find out more, try our savings calculator.

Protect yourself with insurance

This may cost you more in the interim but can be invaluable in the event that something were to go wrong. Some accountancy packages will also offer insurance packages at no extra charge. You can find out more here.

Take control of your finances

Just as your circumstances are unique, your pension plan which will suit you best the Our expert accountants can help you explore your options and find the right pension for you. To find out more, give us a call on 01442 330760 or drop us a message.

 

 

Related Articles

National Freelancers Day is Going Virtual
Uncategorized
Contractor News Roundup: March 2020
Uncategorized
IR35 Reforms: Five Things You Need to Know
Uncategorized
What can contractors expect from the Conservative government?
Uncategorized
IR35 Guidance Updates for Contractors
Uncategorized
SJD Accountancy continues to drive new frontiers with new CEO appointment
Uncategorized

Back to top

Contact Us

  • 0123456789

Useful Links

  • Terms & Conditions
  • Recruiters
  • Privacy
  • Slavery Statement

New Business Hours

Monday - Thursday8:00 AM — 8:00 PM
Friday8:00 AM — 7:00 PM
Saturday10:00 AM — 4:00 PM
SundayClosed

Copyright SJD Accountancy 2021. All rights reserved. SJD Accountancy Ltd is a company registered in England & Wales. Company Registration Number 06277058.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.AcceptReject Read More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.