Pension contributions are a good way of extracting money from family companies, whether this is into a traditional pension or into your own SIPP or SSAS. These are often preferred by small companies because the funds can still be used to benefit the company, but they can only be used for a small number of individuals.

The Trustees of the scheme are responsible for its management but are subject to strict statutory requirements to prevent abuse of the funds.

The annual allowance is £40,000 but any allowance unused can be carried forward for up to 3 years and used in that later year.

In the run up to 5 April 2022, review your pension contributions to see if you can utilise more of your annual allowance. Remember the premium has to be paid to the pension no later than 5 April 2022.