Contract inside IR35 and permie at the same time

[ASB]

Out of interest which umbrellas do allow salary sacrifice into
a) A pension scheme of their choosing (which may subsequently cost to transfer it where you really want it)

b) A pension of your own choosing.

A friend still contracting and now IR35'd couldn't find any that met his requirements.

[eek]

Out of interest which umbrellas do allow salary sacrifice into
a) A pension scheme of their choosing (which may subsequently cost to transfer it where you really want it)

b) A pension of your own choosing.

A friend still contracting and now IR35'd couldn't find any that met his requirements.

That friend wasn't asking the correct question.

However, clarity does so that is what we would recommend.

We've covered this question an awful lot in the past so just check other posts in the umbrella forum / channel.

[ladymuck]

I'll check with the UC regarding the P45. Doing my own accounts. I would rather keep Ltd Co. going for at least dividend distribution so I can push more of the UC's income into pension. Also gives me some time for now to re-evaluate the my future in contracting.

You can close down your company's payroll and issue a P45 without closing down your Ltd Co. It's not difficult.

https://www.gov.uk/stop-employing-staff

[northernladuk]

You can close down your company's payroll and issue a P45 without closing down your Ltd Co. It's not difficult.

https://www.gov.uk/stop-employing-staff

And actually carrying it out in Sage seems pretty straightforward
https://my.sage.co.uk/public/help/as...rticleid=36284

[css_jay99]

You can close down your company's payroll and issue a P45 without closing down your Ltd Co. It's not difficult.

https://www.gov.uk/stop-employing-staff

And actually carrying it out in Sage seems pretty straightforward
https://my.sage.co.uk/public/help/as...rticleid=36284

P45 it is then. I can't believe I have to fire myself.

[northernladuk]

P45 it is then. I can't believe I have to fire myself.

You can't fire yourself as you were never employed. You will still stay an office holder of your company with all it's responsibilities, you just won't be on the PAYE scheme. All the P45 does is detail the pay for the year to cover the finances for tax purposes, nothing to do with your employment(which you aren't anyway).

[ladymuck]

You can't fire yourself as you were never employed. You will still stay an office holder of your company with all it's responsibilities, you just won't be on the PAYE scheme. All the P45 does is detail the pay for the year to cover the finances for tax purposes, nothing to do with your employment(which you aren't anyway).

^ this

You're simply stopping a payroll scheme and issuing the legally required paperwork as a result.

The alternative is that you pay at BR rate of tax and have to claim it back at the end of the year.

I know which I'd prefer to do.

[lucyclarityumbrella]

Are you all saying it is not right to have 2 jobs i.e. Permie+contract combo at the same time?. What if he said he was doing the contract outside of permie working hours?

We have contractors doing just that, but their primary employer has no issue with it. From a tax perspective, you would simply complete the starter checklist stating you have other PAYE employment, which would put you on a BR tax code with the brolly (all at 20%), so you would just have to be aware that there is always going to be a potential of having to sort out some unpaid taxes via self assessment.