A view of IR35 from a hiring manager

[mogga71]

Salary Sacrifice £40k per year into your pension...

Get your company to match your contributions.
(Reducing Employer and Employee NI contributions)

When you get to 55 draw 25% TAX FREE.

hmmm :

Get your company to match your contributions.
(Reducing Employer and Employee NI contributions)

...not sure about this ... you are your employer according to the stupid iR35 rules.

[Zigenare]

hmmm :

Get your company to match your contributions.
(Reducing Employer and Employee NI contributions)

...not sure about this ... you are your employer according to the stupid iR35 rules.

Well go and see your accountant. Let him/her explain it to you. That is their area of expertise.

[mogga71]

Well go and see your accountant. Let him/her explain it to you. That is their area of expertise.

I know exactly how it works. Apologies for my rather stupidity written post.

What I was trying to point out is that it's pointless trying to get your employer to match the contributions when you are effectively providing all the money to your supposed 'employer' anyway ... in most cases being the Umbrella Company going forward.

The whole thing is absurd. For many of us, we have been identified as a disguised employee of a Company ... but we have to pay the Employer NI. Whats even worse is that we then have to find a 'third party' to act as our employer .... but we are giving them all of our money so they can then pay it back to us, give the tax to the HMRC etc. and make a few bob themselves.

[Zigenare]

I know exactly how it works. Apologies for my rather stupidity written post.

What I was trying to point out is that it's pointless trying to get your employer to match the contributions when you are effectively providing all the money to your supposed 'employer' anyway ... in most cases being the Umbrella Company going forward.

The whole thing is absurd. For many of us, we have been identified as a disguised employee of a Company ... but we have to pay the Employer NI. Whats even worse is that we then have to find a 'third party' to act as our employer .... but we are giving them all of our money so they can then pay it back to us, give the tax to the HMRC etc. and make a few bob themselves.

Actually, judging by your response, I would suggest you don't understand how it works.

Oh, we're in General...
Ok, you thick twunt, either go and see an accountant or not, no skin off my nose. It's blatantly obvious you're a

[mogga71]

Actually, judging by your response, I would suggest you don't understand how it works.

Oh, we're in General...
Ok, you thick twunt, either go and see an accountant or not, no skin off my nose. It's blatantly obvious you're a

Ok ... I'll Bite

1. Salary Sacrifice £40k per year into your pension...

2. Get your company to match your contributions.
(Reducing Employer and Employee NI contributions)

3. When you get to 55 draw 25% TAX FREE.

Totally agree with 1 and 3.

When you say in 2 ... 'company' .... what company ? The end client? .... the intermediary eg. Umbrella .... your Limited Company if you (still) have one ?

As you say I must be a th&ck tw&t as I certainly don't understand who you mean by Company ... does anybody else?

[IR35 Avoider]

The idea that you'll get the same quality of person at the same pay regardless of whether it's a contract or a permanent job is wrong. The extra security of a "permanent" role is worth something to the worker, so if you don't want to give that, you'll have to pay more, on average.

[Andy2]

if you work through an umbrella company , can you ask them to put 40k into your SIPP ?

[BR14]

yes

[northernladuk]

if you work through an umbrella company , can you ask them to put 40k into your SIPP ?

Only some and couldn't previously so it's new. Needs a lot of research.

[mogga71]

if you work through an umbrella company , can you ask them to put 40k into your SIPP ?

Yes, that's correct. Paystream will do this. One of the only ones who will. Others offer SS but not directly into your SIPP.

You will need to take the minimum wage but after that you can pay everything (up to 40K) into the SIPP, thus avoiding all deductions. Whats more, as long as you have had you SIPP open for the period, you can backpay for 3 years too. Basically it's the only benefit we have left if caught by IR35.

There are quite a few posts about it on here.