I am a 49 year old commercial accountant with a life limited illness. My health deteriorated in 2016 to a point where my life expectancy was less than a year, it was a traumatic time and I left my career taking ill health retirement.
My condition, although still life limiting (hopefully another 8-10 years), stabilized and I soon became increasingly involved with various charities and the arts keeping myself busy.
My annual pension is roughly a quarter of what my salary used to be but with an adapted lifestyle my family is coping financially.
With my husband working full time and my children still in full time education I have been keen to get some structure back into my life and get back to what I am good at. My predicament is such that my pension provider will not allow me to “earn more that the LEL in any given financial each year”, if it is exceeded then my pension would be reduced significantly or stopped permanently. As it stands if I were to die in the next 5 years my family would still benefit from my pension payments, therefore keen my pension continues.
With that in mind I recently set myself up as a Limited company and have been doing temporary contract work. The intention being that any earnings over and above the LEL to be paid via the company to my husband as Director or kept in the company with the intention of looking at moving to a pension. Note: the guidance issued by my pension provider stated that any future pension payouts would not be breaching their rules.
However, the dreaded IR35 rules coming into force will pretty much put a stop to my plan.
My question is….what is classed as ‘Earnings’ for Self Assessment purposes? if I were to be offered a position with a company paying e.g. £50k, and they were amenable, is there anything stopping me getting the company to invest the difference into a pension for me? Or would this be “earnings” anyway? Any help appreciated, I’ve tried pension advisors, legal professionals and so far I’m drawing a blank.
My condition, although still life limiting (hopefully another 8-10 years), stabilized and I soon became increasingly involved with various charities and the arts keeping myself busy.
My annual pension is roughly a quarter of what my salary used to be but with an adapted lifestyle my family is coping financially.
With my husband working full time and my children still in full time education I have been keen to get some structure back into my life and get back to what I am good at. My predicament is such that my pension provider will not allow me to “earn more that the LEL in any given financial each year”, if it is exceeded then my pension would be reduced significantly or stopped permanently. As it stands if I were to die in the next 5 years my family would still benefit from my pension payments, therefore keen my pension continues.
With that in mind I recently set myself up as a Limited company and have been doing temporary contract work. The intention being that any earnings over and above the LEL to be paid via the company to my husband as Director or kept in the company with the intention of looking at moving to a pension. Note: the guidance issued by my pension provider stated that any future pension payouts would not be breaching their rules.
However, the dreaded IR35 rules coming into force will pretty much put a stop to my plan.
My question is….what is classed as ‘Earnings’ for Self Assessment purposes? if I were to be offered a position with a company paying e.g. £50k, and they were amenable, is there anything stopping me getting the company to invest the difference into a pension for me? Or would this be “earnings” anyway? Any help appreciated, I’ve tried pension advisors, legal professionals and so far I’m drawing a blank.