Our website uses cookies to store information on your computer. You may delete and block all cookies from this site, but parts of the site will not work as a result. Find out more about how we use cookies.
(Accept cookies and do not show this message again)
Shout99 - News matters for freelancers
Search Shout99 - News matters for freelancers
(Advanced Search)
   Join Shout99  About Shout99   Sitemap   Contact Shout99 13th Jun 2024
Forgot your password?
Shout99 - Freelancers, FO35, Section 660
New Users Click Here
Shout99 - Freelancers, FO35, Section 660
Shout99 - Freelancers, FO35, Section 660
Front Page
Freelancers' Shop...
Ask an Expert...
Direct Contracts
Press Links
Question Time
The Clubhouse
Conference Hall...
News from Partners


Business Links

Shout99 - Freelancers, FO35, Section 660

Freelancers' Shop

Personal Financial Services
from ContractorFinancials




Income protection

... and more special offers for Shout99 readers in the Freelancers' Shop

Shout99 - Freelancers, FO35, Section 660
Shout99 - Freelancers, FO35, Section 660

News for the
Construction Industry

Hardhatter.com - News for small businesses in the construction industry

Powered by
Powered by Novacaster

Budget (3): Pension changes could encourage older contractors to return
by Susie Hughes at 11:30 16/03/23 (Political News)
Budget proposals to change pension allowances to encourage early retirees back into work could benefit older contractors thinking of returning to the work-place.
The Chancellor Jeremy Hunt announced a two-prong promise to make pensions more attractive to higher earners:
  • To abolish the cap of 1.07 million on the amount workers can accumulate in pensions savings over their lifetime before having to pay extra tax; and
  • To increase the tax-free yearly allowance for a pension pot from 40,000 to 60,000.

Matt Fryer of contractor accountants, Brookson Group, saw positives for contractors in this. He said: "It was perhaps of little surprise (and perhaps relief for some) that there were no targeted measures announced in the Budget directly impacting the UKs flexible labour market.

"Given the scrutiny on the sector over recent years a period of certainty around the tax treatment of contractors is not a bad thing. The Government has however missed the opportunity to tidy up some of the complications associated with the off-payroll rules. There was no mention of umbrella company regulation, however, it is widely expected that this is something which will be progressed in the near future.

"Perhaps the main measure of note to pick out would be the increase in the annual pension allowance from 40,000 to 60,000. This will be of benefit to all high earners and is a common tax planning technique for contractors, both those operating via a PSC or umbrella. In my view it is likely to attract some over 50s back into contracting, even into inside IR35 contracts via umbrella companies.

"This is because high earning umbrella employees will perhaps be the biggest beneficiaries of this measure as they will now be able to access even greater tax and NIC savings if they are able to enter in to pension salary sacrifice agreements with their employer."

Spring Budget 2023
For more information and expert analysis on issues relating to freelancers, contractors and small businesses in the Autumn Statement see Shout99's Political News section.

Further IR35 information
For more information about all aspects of IR35, including the controversial IR35 reforms see Shout99's News on IR35 section.

If you wish to comment on this article, please log in and use the Reply button below. Registering is free and easy - see 'Join Shout99'.
Susie Hughes Shout99 2023

Printer Version

Mail this to a friend

Copyright 1999-2018, Shout99.com | All Rights Reserved
Privacy Notice and Terms of Use