Personal Pension contributions Vs Dividends If you run a UK limited company, you’ve probably been told the “standard play” is dividends. But here’s the tax-manager move most directors miss, an employer pension contribution is a company expense that can be far more efficient than taking the same money as dividends. Done properly, it can reduce your company’s taxable profits and  avoid dividend tax now. Why dividends often cost more than you think Dividends are paid out of prof