SIPP pensions & IR35 changes for public sector Ltd co. Contractors

[Bowgreave]

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?

[eek]

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?

Well it will depend on whether you are inside or outside IR35. If outside there is nothing to worry about.

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 pension

[malvolio]

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?

[eek]

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?

Still 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....

[malvolio]

Still 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....

Yeah, thought that was the case. Ta.

[Jones]

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).

[Glend167]

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?

Thanks

[northernladuk]

Does anyone know of an umbrella company that runs a salary sacrifice pension scheme and will make payments to a SIPP?

Thanks

This looking interesting?

http://www.contractorumbrella.com/pension.html

[Glend167]

This looking interesting?

Pensions for Contractors working through an Umbrella Company

Thank you for your reply NLUK.

I will contact Contractor Umbrella Limited and ask if their Scottish Widows pension scheme includes a SIPP option.

[Jones]

"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.