LTD Co inside and outside SIPP's

[gmf]

Hi.

I have a limited co for contracting (outside) and other sources of income from consulting coming into it.

I have a SIPP and have been making company contributions over the years.

It looks like I'll have to take an inside IR35 contract for my next one and will continue to take payment through the company as I'll be keeping it as a going concern. As I understand it the agency will deduct tax and NI at source and pay me the net figure into my LTD Co.

How will SIPP payment work in this instance on those funds as I can't claim a company expenses etc. What's the process?

Thanks.

G

[gmf]

https://www.contractoruk.com/umbrell...companies.html

Looks like contributions from the umbrella company gross into the SIPP.....and deducted before payment to / through LTD Co.

[jamesbrown]

You’re over-complicating it. There’s no sane reason to use a limited company for contracts that are inside IR35 and most supply chains won’t even facilitate it. Use a reputable umbrella that offers salary sacrifice into your pension any then pays you personally (since you’re an umbrella employee).

[eek]

Hi.

How will SIPP payment work in this instance on those funds as I can't claim a company expenses etc. What's the process?

deemed payments and pensions aren’t good partners. Use an umbrella willing to pay you minimum wage and put everything else (after their fee) into your SIPP pension fund. For reference the calculation I did for someone else showed that the breakeven point is at £613 into your pension a month.

as for which umbrella to use - there’s a lot to choice from but we recommend clarity (and Lucy) because we know how see works and we know problems are fixed quickly.