So my current strategy has been to take modest salary, divs up to HR limit, little or no pension contribution to try and amass as big a warchest as possible. Plan then is to leave contracting several years down the line with bumper a ER payout and go and do some other totally different work.
Expecting that this other work may see me salaried paying higher rate I'd then look to take salarly sacfrifice on anything above the HR threshold to fund my pension. Thus catching up on missed pension contribution in a tax efficient way.
I'm concerned of 3 areas of law that may change and scuppper my plans.
The threatened removal of higher rate relief saw me putting a lump sum into pension days before the last budget so I'm considering doing this again although it makes a mess of my overall strategy.
I know I could just pay into pension now and later when permie but I'd rather do ISAs, BTL etc as part of retirement income investments which need funds in the near term.
Interested to know your thoughts on the best approach/risk mitigation - or indeed what others are doing if in a similar situation?
Expecting that this other work may see me salaried paying higher rate I'd then look to take salarly sacfrifice on anything above the HR threshold to fund my pension. Thus catching up on missed pension contribution in a tax efficient way.
I'm concerned of 3 areas of law that may change and scuppper my plans.
- Pension higher rate "relief" removal
- ER on disposal meddling
- Private sector blanket inside IR35. aka "the death of contracting"
The threatened removal of higher rate relief saw me putting a lump sum into pension days before the last budget so I'm considering doing this again although it makes a mess of my overall strategy.
I know I could just pay into pension now and later when permie but I'd rather do ISAs, BTL etc as part of retirement income investments which need funds in the near term.
Interested to know your thoughts on the best approach/risk mitigation - or indeed what others are doing if in a similar situation?
Comment