IR35 as you're approaching retirement

[eek]

Indeed although rather surprisingly one of the clients I'm waiting for feedback on will pay travel and overnight accomodation and an agent suggested another is open to some form of remuneration if the right person is a good distance away. Just have to look in to the detail of that if it comes to it and how it pans out with the umbrella.

Badly - because if it's commuting to your place of work (which for an umbrella means where you go most often) it's going to be taxable income and not reclaimable expenses.

HMRC are really arsey about this and can query everything so most umbrellas are very wary...

[rashm2k]

I ran the calcs myself for an inside rate, again with the giant calculator, turns out you can get a 93% take home pay effectively once you put it all into a SIPP, no 19% corp tax (more like 20%+ these days with the tapering), so it's not bad at all. I'm going to invest most of that money anyway so i can retire early so, a SIPP is as good a place as any.

Plus I've not put any into the pension for the last 3 years so I can put up to £180k this year.

I can do exactly the same (and more) with a ltd company, but an outside rate doesn't get the same uplift as an inside one.

What spun me into action was the ~50% tax I'd have to pay were I not putting all of it into a SIPP!!!!!!

[jamesbrown]

I think some of you are forgetting that a SIPP is not just avoiding tax, but deferring it. Sure, you may have a lower marginal rate and no NI in retirement, but you ain’t retaining 90%+ in the long run. SIPP contributions only make sense to a point.

[Lance]

I think some of you are forgetting that a SIPP is not just avoiding tax, but deferring it. Sure, you may have a lower marginal rate and no NI in retirement, but you ain’t retaining 90%+ in the long run. SIPP contributions only make sense to a point.

pensions avoid IHT so if you die before spending it, it saves a lot of tax....

If you have kids, spend the pension last.

[jamesbrown]

pensions avoid IHT so if you die before spending it, it saves a lot of tax....

If you have kids, spend the pension last.

For now.

https://www.investorschronicle.co.uk...new-proposals/

[Lance]

For now.

https://www.investorschronicle.co.uk...new-proposals/

oh well.... Best spend it then

[Protagoras]

I think some of you are forgetting that a SIPP is not just avoiding tax, but deferring it. Sure, you may have a lower marginal rate and no NI in retirement, but you ain’t retaining 90%+ in the long run. SIPP contributions only make sense to a point.

And we don't know for how long the ability to take 25% tax-free from the SIPP will last.

[Lance]

And we don't know for how long the ability to take 25% tax-free from the SIPP will last.

I don't see that going anywhere. It encourages saving a pension, and that has cross party support as it reduces the burden on the state. More likely that the state pension becomes means tested, which would be incredibly unpopular amongst tories.

[Protagoras]

I don't see that going anywhere. It encourages saving a pension, and that has cross party support as it reduces the burden on the state. More likely that the state pension becomes means tested, which would be incredibly unpopular amongst tories.

I could envisage the 25% being capped at a lower level. This would not be unpopular since it would only impact the 'rich'. That said, if such a thing was to be announced, there would be a lot of folk grabbing their money pre-implementation.

Means testing state pension, what a horrible idea! This would seriously impact people who have made long term plans on the basis of full state pension. I'm sure that I'm not alone in including that in my long term retirement funding model.
Besides, most people don't know that it's a Ponzi scheme and think that they've paid their contributions.

[Lance]

I could envisage the 25% being capped at a lower level. This would not be unpopular since it would only impact the 'rich'. That said, if such a thing was to be announced, there would be a lot of folk grabbing their money pre-implementation.

Means testing state pension, what a horrible idea! This would seriously impact people who have made long term plans on the basis of full state pension. I'm sure that I'm not alone in including that in my long term retirement funding model.
Besides, most people don't know that it's a Ponzi scheme and think that they've paid their contributions.

true...

But then again... the state pension barely covers my beer bill. It's only £200 a week FFS..

I don't know anyone who survives comfortably on it. If you're on just the state pension you are entitled to other benefits as well so it's already too small for its purpose so why pay it to people who have other means?