Increasing Dividends and Considering Pensions

A growing business often means the client is ready to take more income, and is also thinking about pension contributions. But most don’t know how to weigh up personal vs company pension routes. With Tax Torch, you can model both and show the difference in take-home pay, tax efficiency, and company cost.

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• Add current salary and increased dividends.
  
• In the first scenario, add a personal pension contribution.
  
• In the second, model the same amount as an employer contribution.
  
• Compare total tax impact across both.
• Use visual outputs to discuss trade-offs with the client.

• When clients want to draw more income
  
• At year-end for remuneration and pension planning
• To help clients optimise pension strategy across personal and business