Has anybody on here had discussions with their agent (about to turn employer) and/or umbrella company about pensions when caught by Ir35?
The agents that have been talking to contractors at my place (who are all about to switch to PAYE from Jan) are all quoting that 3% of the contractors rate/pay will, by default, be paid into their company pension scheme. However, nobody seems to know whether the contractors can tell the agent that they don't want to pay this 3% (opt out if you like) and instead direct part of their money (up to £40k) into their own existing SIPP.
The pension route seems to be the only real benefit left for contractors under iR35 as the money can be directed towards a pension without paying any tax at all.
It will be criminal if this will not be allowed as it will a final kick in the rocks just as we are falling to the floor.
I have my initial meeting with agent tomorrow and I will discuss and get back to you.
I find it strange that this does seem to have mentioned in any detail in any posts on here as the way I see it, its the most important aspect of being caught and maximising the pay.
The agents that have been talking to contractors at my place (who are all about to switch to PAYE from Jan) are all quoting that 3% of the contractors rate/pay will, by default, be paid into their company pension scheme. However, nobody seems to know whether the contractors can tell the agent that they don't want to pay this 3% (opt out if you like) and instead direct part of their money (up to £40k) into their own existing SIPP.
The pension route seems to be the only real benefit left for contractors under iR35 as the money can be directed towards a pension without paying any tax at all.
It will be criminal if this will not be allowed as it will a final kick in the rocks just as we are falling to the floor.
I have my initial meeting with agent tomorrow and I will discuss and get back to you.
I find it strange that this does seem to have mentioned in any detail in any posts on here as the way I see it, its the most important aspect of being caught and maximising the pay.
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