7. Build up cash reserve in company
This is the wrong idea. You should pay the profits each year as income and use the net receipts to pay down your mortgage.7. I think this could be a better option than funelling money into the directors pension yearly as I was intending to do. I need to better understand the rules around backdating contributions.
Building up cash in a company is bad. You pay Corporation Tax on the profits retained each year. Then you pay income tax (or CGT) when you get them into your hands eventually.
I think the point made was that with a company, you are not subject to the use it or lose it pension rules facing employees and the self-employed.
In other words, if you focus on getting your mortgage down to a safe level over the next 5 years, you will have lost some of the opportunity to contribute to a pension from your salaries. However, at that stage, you can stuff the pension from the company's profits.