What's changed - FAQ

[BigRed]

If I accept a new contract in the public sector then, I should reduce dividends to <£5000 each for the two shareholders, which will reduce the company warchest; cancel all my company related insurance; think about salary sacrifice into pension which by law would be offered by the agency regardless.

Do I sack my wife who is employed as a bookkeeper as she is surplus to requirements now? Do I give her a generous termination package?

Regarding pensions, I recently took the lump sum from a final salary pension as I thought receiving it tax free and contributing to an stocks and shares ISA would be the most efficient but I'm now unsure about the rules on recycling benefits if I wish to do salary sacrifice.

Regarding the tax, I think saying it will be weekly rate X 52 is a little simplistic as I thought it was always calculated based on the year to date extrapolated to the full year, so there will be a little overpayment initially for many but as holidays and sickness cick in this will reduce.

[SueEllen]

National Crime Agency? Non-ministerial department, run by the government, not bound by FoI. So according to post 1 they don't have to apply the rules even though they are clearly public sector.

They are exempt from FOI due to reasons of national security but that doesn't mean those who are contractors for them are exempt from IR35 regulations as it is up to the end-client to determine that.

You are desperately trying to read a UK law specifically a tax regulation as black and white, but if you know anything about laws in the UK and specifically tax regulations they are rarely black and white.

[SueEllen]

If I accept a new contract in the public sector then, I should reduce dividends to <£5000 each for the two shareholders, which will reduce the company warchest; cancel all my company related insurance; think about salary sacrifice into pension which by law would be offered by the agency regardless.

Do I sack my wife who is employed as a bookkeeper as she is surplus to requirements now? Do I give her a generous termination package?

Regarding pensions, I recently took the lump sum from a final salary pension as I thought receiving it tax free and contributing to an stocks and shares ISA would be the most efficient but I'm now unsure about the rules on recycling benefits if I wish to do salary sacrifice.

Regarding the tax, I think saying it will be weekly rate X 52 is a little simplistic as I thought it was always calculated based on the year to date extrapolated to the full year, so there will be a little overpayment initially for many but as holidays and sickness cick in this will reduce.

Get a role in the private sector then nothing is stopping you, and by the time the government tries to bring it in successfully to the private sector you should be able to retire.

[northernladuk]

If I accept a new contract in the public sector then, I should reduce dividends to <£5000 each for the two shareholders, which will reduce the company warchest; cancel all my company related insurance; think about salary sacrifice into pension which by law would be offered by the agency regardless.

Do I sack my wife who is employed as a bookkeeper as she is surplus to requirements now? Do I give her a generous termination package?

Regarding pensions, I recently took the lump sum from a final salary pension as I thought receiving it tax free and contributing to an stocks and shares ISA would be the most efficient but I'm now unsure about the rules on recycling benefits if I wish to do salary sacrifice.

Regarding the tax, I think saying it will be weekly rate X 52 is a little simplistic as I thought it was always calculated based on the year to date extrapolated to the full year, so there will be a little overpayment initially for many but as holidays and sickness cick in this will reduce.

WTF are you on?

[BigRed]

Sadly, I finished my last contract end of January and there doesn't seem much out there. This is local and offering a really good rate for PS. I really don't want extended bench time at this time of year while the kids are at school and it soon adds up.

[BigRed]

WTF are you on?

A rather nice Pinot Gris.

[northernladuk]

A rather nice Pinot Gris.

Sounds like it.

[KC1]

With the likes of Sellafield and Magnox being private limited companies, can they be classed as PS and are they covered by the FOI act?

[eek]

With the likes of Sellafield and Magnox being private limited companies, can they be classed as PS and are they covered by the FOI act?

A two second Google search (Sellafield freedom information) brings up Freedom of Information | Sellafield Ltd so yes they are included.

[eek]

Sadly, I finished my last contract end of January and there doesn't seem much out there. This is local and offering a really good rate for PS. I really don't want extended bench time at this time of year while the kids are at school and it soon adds up.

So go for it provided you can get the figures to stack up. There is no problem going for public sector work if that's the best deal around. You just need to go in with yours eyes open knowing that you are being paid PAYE without expenses and you may hit thresholds that impact other things like child benefit..

As for the questions in your previous post - how you run your business is your own affair. I don't however personally believe your accounts require more than 1 hour a month to do so claiming for a book keeper is probably a bit rich..