Deemed LtdCo payment direct to SIPP Deemed LtdCo payment direct to SIPP
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  1. #1

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    Default Deemed LtdCo payment direct to SIPP

    Could the agency pay the (deemed LtdCo rate + NICR + apprentice levy) directly to LtdCo contractor's SIPP?
    This makes agency's job easy - don't have to bother deducting the NICE & Tax from deemed LtdCo rate, as payment to SIPP is made in gross.
    Might be useful for those who don't need the cash straightaway and mitigate the cut.
    Is this practical?

  2. #2

    My post count is Majestic

    northernladuk's Avatar
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    There are at least three threads on umbrellas that lay in to personal sipps going in at the moment and quite a few others in the last few months.
    .

    Umbrella pension site:contractoruk.com/forums - Google Search
    Last edited by northernladuk; 20th February 2020 at 22:51.
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    As mentioned in the other threads, there are minimum wage considerations too. Depends on the agency etc. All covered in the discussions NLUK refers to

  4. #4

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    ..didn't see threads on the scenario agency paying to LtdCo directly (as opposed to umbrella paying salary to individual). Can it work?

  5. #5

    bored now

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    Quote Originally Posted by professor View Post
    ..didn't see threads on the scenario agency paying to LtdCo directly (as opposed to umbrella paying salary to individual). Can it work?
    Because it won’t work, agencies deemed payments are after tax already deducted so it won’t work as the employer NI has been paid.
    merely at clientco for the entertainment

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    Quote Originally Posted by eek View Post
    Because it won’t work, agencies deemed payments are after tax already deducted...
    What is stopping agencies from changing that model?

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    Quote Originally Posted by professor View Post
    What is stopping agencies from changing that model?
    The law
    merely at clientco for the entertainment

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