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I have recently started my own limited company in order to go contracting again. Last time I used an umbrella organisation, but that option no longer seems viable, so this time I chose to go it alone. However, one thing I noticed the other day when calculating how much I will have to pay HMRC was that when I reach 65 (which isn't long to go now for me!) I will no longer be liable for NI payments!
This means IR35 will no longer have the double NI payments sting in its tail for me, and I can set my income levels at whatever percentage of my company income I like, without incurring any extra taxation in the form of NI payments, either employer or employee. This is the side of IR35 that I have always detested, and as an oldie I look forward to being able to stick two fingers up at it, knowing that my taxation will never exceed 40%, unlike the current up to 60% of gross I would have to pay if caught by IR35.
So for those of us who have found themselves virtually unemployable in a permanent job due to age, there is the possibility that after reaching pensionable age, we will be able to continue as contractors, consultants, etc, but this time with a significantly larger take home percentage of company gross earnings. We will be able to do this without fear of investigation by HMRC for possible tax avoidance/evasion or whatever new term they will choose to employ in the next few years to demonise us, if we set our personal income to be less than the company gross.
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BobH-UK
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