S2P (State Second Pension) contracting out to a SIPP

[richy]

Hi There

My salary from Ltd co is the 7k amount per annum. Just read there is possibility to contract out from S2P. Anyone know if that's something worth considering? I wondered if I would need to have a different setup to make it possible..

Thanks, Rich

[Nixon Williams]

By paying a salary of £7,000 neither your company nor you will be paying National Insurance, so you would not benefit from opting out of the S2P (State 2nd Pension) as you are not 'contributing' to a S2P

By all means chat with your pension advisor.

Alan

[richy]

Many thanks Alan.

[Gonzo]

It's a moot point, it won't be possible for most people to contract out of S2P after the 6th April this year.