IR35 & SIPP

[Prof]

Context:
i) ESM00035 says deemed payment received by the LtdCo could be withdrawn by the Director as non-taxable dividend. Advantage: No RTI from LtdCo required.
ii) For sole shareholder, sole director LtdCo, no pension enrollment required.

Just checking whether it is possible to take advantage of (i) & (ii) to avoid the 'redundant RTI' by the LtdCo and at the same time avail SIPP pension tax relief.

Firstly, is deemed payment classed as "qualified earnings” for pension contributions?or does it require RTI from the LtdCo to make it "qualified earnings" ?

If deemed payments are allowed as "qualified earnings”:
case 1: the director can contribute to their SIPP and receive the pension tax relief, with deemed payment withdrawn as non-taxable dividend, no RTI - simple to implement, would that be right?
case 2: on the other hand, if the LtdCo pays employer contributions into the director’s SIPP, in what way can the Director claim pension tax relief?

[northernladuk]

<unhelpful response> mod snip

[eek]

Context:
i) ESM00035 says deemed payment received by the LtdCo could be withdrawn by the Director as non-taxable dividend. Advantage: No RTI from LtdCo required.
ii) For sole shareholder, sole director LtdCo, no pension enrollment required.

Just checking whether it is possible to take advantage of (i) & (ii) to avoid the 'redundant RTI' by the LtdCo and at the same time avail SIPP pension tax relief.

Firstly, is deemed payment classed as "qualified earnings” for pension contributions?or does it require RTI from the LtdCo to make it "qualified earnings" ?

If deemed payments are allowed as "qualified earnings”:
case 1: the director can contribute to their SIPP and receive the pension tax relief, with deemed payment withdrawn as non-taxable dividend, no RTI - simple to implement, would that be right?
case 2: on the other hand, if the LtdCo pays employer contributions into the director’s SIPP, in what way can the Director claim pension tax relief?

It's a deemed payment after all tax has been deducted on your behalf - so you should be paying it directly into your personal bank account.

If you wish to put money into a pension the best approach would be to use an umbrella that does salary sacrifice as that will give you the ability top put the money that would otherwise go in Employer and Employee NI payments directly into your pension.

[Prof]

Understood your comment on the ability to top up with umbrella, eek; thank you.

About paying directly to personal a/c: does folks do that without RTI and still get pension tax relief in SIPP?