Tax advice of the week: Set up an EFURBS fund
Employer-Funded Unapproved Retirement Benefits Schemes don't offer the same tax advantages as approved pension funds, but your company will receive relief when payments are made to you and any other beneficiaries.
Employer Funded Unapproved Retirement Benefits Schemes (EFURBS) don't offer the same tax advantages as approved pension funds. But there are "no set limits" on your company's contributions or "what the money can be invested in", says Tax Tips and Advice.
Although "your company won't get a tax deduction for the year it makes the contribution", it will receive relief when payments are made out of the fund to you and any other beneficiaries. You will pay tax on payments as you would with any other pension income.
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"Instead, John can borrow the money from the EFURBS Acom set up for him." He'll avoid the 25% tax and although he'll have to pay interest on the loan, this will go into the EFURBS and "will find its way back to John when he takes his pension". Note, the EFURBS must be set up to allow loans.
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