I am in my 60s with a occupational pension and I have recently been working on a part time public sector contract through my own limited company. The company runs at a slight loss, on my contractors accountants advice. I have never paid myself a wage, so I have not needed to pay income tax or N I, as all the contracting income has been paid into my SIPP. Can I continue to legitimately do this once the responsibility for deducting income tax moves to the recruiting agency that pays me in April 2017?
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
SIPP pensions & IR35 changes for public sector Ltd co. Contractors
Collapse
X
-
-
Originally posted by Bowgreave View PostI am in my 60s with a occupational pension and I have recently been working on a part time public sector contract through my own limited company. The company runs at a slight loss, on my contractors accountants advice. I have never paid myself a wage, so I have not needed to pay income tax or N I, as all the contracting income has been paid into my SIPP. Can I continue to legitimately do this once the responsibility for deducting income tax moves to the recruiting agency that pays me in April 2017?
If you are inside your problem is that your company will now receive the payments after Employers NI has been deducted and Employees NI and income tax withheld. While you will be able to reclaim the income tax bit back via self assessment the NI contributions will be lost.
My FAQ has a brief overview but its likely you will lose out - I also don't think an umbrella would help you as they do need to pay you the national living wage before anything can be paid into a pensionmerely at clientco for the entertainment -
If he's of pensionable age (something of a variable these days!) then EeNICs won't apply.
I've never been to clear on ErNICs though - are they still due regardless?Blog? What blog...?Comment
-
Originally posted by malvolio View PostIf he's of pensionable age (something of a variable these days!) then EeNICs won't apply.
I've never been to clear on ErNICs though - are they still due regardless?merely at clientco for the entertainmentComment
-
Originally posted by eek View PostStill need to be deducted see https://www.gov.uk/employee-reaches-state-pension-age (first google link). So that's a 14.3% deduction which won't be recoverable....Blog? What blog...?Comment
-
Umbrella Min Wage + SIPP
Working part time through an umbrella on minimum/living wage there may be no NICs to pay depending on the number of hours.
Some umbrellas won't let you pay into your own SIPP as an Employer contribution (rather than their own plan).Comment
-
Umbrella company, salary sacrifice pension with payments into a SIPP?
Does anyone know of an umbrella company that runs a salary sacrifice pension scheme and will make payments to a SIPP?
ThanksComment
-
Originally posted by Glend167 View PostDoes anyone know of an umbrella company that runs a salary sacrifice pension scheme and will make payments to a SIPP?
Thanks
http://www.contractorumbrella.com/pension.html'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
-
Originally posted by northernladuk View Post
I will contact Contractor Umbrella Limited and ask if their Scottish Widows pension scheme includes a SIPP option.Comment
-
"Does anyone know of an umbrella company that runs a salary sacrifice pension scheme and will make payments to a SIPP? "
PayStream? – Chris Dwyer said they would make employer contributions into a Hargreaves Lansdown SIPP for income over min. wage. Haven't tried them yet. Google them first.Last edited by Jones; 10 March 2017, 10:50.Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Top 5 contractor compliance challenges, as 2025-26 nears Yesterday 08:53
- Joint and Several Liability ‘won’t retire HMRC's naughty list’ Oct 2 05:28
- What contractors can take from the Industria Umbrella Ltd case Sep 30 23:05
- Is ‘Open To Work’ on LinkedIn due an IR35 dropdown menu? Sep 30 05:57
- IR35: Control — updated for 2025-26 Sep 28 21:28
- Can a WhatsApp message really be a contract? Sep 25 20:17
- Can a WhatsApp message really be a contract? Sep 25 08:17
- ‘Subdued’ IT contractor jobs market took third tumble in a row in August Sep 25 08:07
- Are CVs medieval or just being misused? Sep 24 05:05
- Are CVs medieval or just being misused? Sep 23 21:05
Comment