SIPP pensions & IR35 changes for public sector Ltd co. Contractors

[Bowgreave]

SIPP clarification and further assistance request

I am in my 60s with a occupational pension and I have recently been working on a part time public sector contract through my own limited company. The company runs at a slight loss, on my contractors accountants advice. I have never paid myself a wage, so I have not needed to pay income tax or N I, as all the contracting income has been paid into my SIPP. Can I continue to legitimately do this once the responsibility for deducting income tax moves to the recruiting agency that pays me in April 2017?

Thanks for all the useful pointers. I do fall under IR35 and I have hit OAP status (!) at 65. My contract recruiting agency, who effectively I charge in the first instance for my services, will allow me to salary sacrifice everything above a minimum wage into a pension, so that can remain tax-free. Am I correct in assuming that if I pay that minimum wage straight into my SIPP pension then I can reclaim the income tax deducted by the agency at source from my minimum wage in my self-assessment, but not the NICs?

[adubya]

Thanks for all the useful pointers. I do fall under IR35 and I have hit OAP status (!) at 65. My contract recruiting agency, who effectively I charge in the first instance for my services, will allow me to salary sacrifice everything above a minimum wage into a pension, so that can remain tax-free. Am I correct in assuming that if I pay that minimum wage straight into my SIPP pension then I can reclaim the income tax deducted by the agency at source from my minimum wage in my self-assessment, but not the NICs?

If you're already drawing a pension then presumably you're aware that a lower contribution limit may apply to SIPP contributions ? I say "may" because the lower limit applies if you're accessing your existing pension in certain "flexible" ways.

If you are caught by the lower contribution limit then it's £10K in 2016/17 tax year, decreasing to £4K for 2017/18.

[Bowgreave]

If you're already drawing a pension then presumably you're aware that a lower contribution limit may apply to SIPP contributions ? I say "may" because the lower limit applies if you're accessing your existing pension in certain "flexible" ways.

If you are caught by the lower contribution limit then it's £10K in 2016/17 tax year, decreasing to £4K for 2017/18.

Thanks for this but no that doesn't apply. They are 2 government pensions derived from my final salaries in 2 posts plus OAP and I keep my contract earnings under the amount I have to pay tax on to preserve the 20% HMG bonus.