There are various ways directors can invest in the available pension schemes which can be registered with HMRC (HM revenue and customs). HMRC presents pension schemes specifically for the owners and directors of the organization. To avail the pension schemes directors are required to enter into a retirement plan agreement through which they can defer certain amount of their compensation to these retirement plan accounts.
This agreement sets forth the terms for the retirement plan like the percentage that will be deducted from the monthly compensation of the director towards the retirement plan, the duration during which these deductions would be active and the way this deducted money for the retirement plan would be utilized. Nowadays there is huge relaxation in the tax rules for these retirement plans and pension schemes which provides great flexibility in designing these plans.
Director’s Retirement Plan Agreement
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