Pension contributions are a good way to reduce corporation tax. However they are not suitable for everyone
To reduce the corporation tax the pension contribution needs to be paid in year. Therefore if cashflow is tight then people may need the 9 months post year end that they get to pay the corporation tax
Some people need money now as salary or dividend rather than making a pension contribution that can only be accessed once they reach a certain age
However it is worth bearing in mind that if the contribution is going into a pension that is controlled by you personally then it may be used to purchase commercial property or to loan back to the company if needed if certain conditions are met
There is a cap on what pension contribution can be made annually
