Self Employed & Company Directors & Employer Pension Schemes

There are now several options available for Self-Employed individuals, Directors, and Employer Pension Schemes, primarily Master Trusts and PRSAs.

Self-employed individuals and business owners generally have a few pension options, with the most common being Personal Retirement Savings Accounts (PRSAs), and now the newer option of master trust with an occupational-style structure.

A PRSA is often the starting point because it’s flexible and portable — you own the contract personally, can vary contributions when income fluctuates, and benefit from tax relief at your marginal rate along with tax-free investment growth. Companies can also contribute to a director’s PRSA and claim corporation tax relief, which makes it a popular way to move profits into long-term retirement savings. However, since 2025, employer contributions are usually capped at 100% of salary, so planning your director salary and pension strategy together has become more important.

For business owners operating through a limited company, pensions historically included executive or company director pensions, which allowed higher contributions and flexible funding — but with changing regulation these are being phased out with many people now moving to PRSAs or Master Trusts instead.