Advice required on pension / taxes

zweety

Hi,

I have just started working for a small company (10 employees) which doesn't have any pension plan. I am 23yo and want to start one.

I am French, and obviously don't know yet were I am going to retire but I don't plan to go back to France...

There are 2 possibilities:

- My boss told me that they can hire me as self-employed, give me my gross salary, and then I deduct the taxes myself, and keep the pension part (as far as I understood...). However, I really need more advice about it, and how it works.

- They hire me as an employee, pay the taxes themselves, and I have the national pension scheme (that's what I've been doing with my last job for a year).

But in any case, I still want an additional pension scheme than the national one... As I can't rely on my company's one, what is the best for me considering that I am only 23yo, and MIGHT go back to France in my working life.

I look forward to hearing from you,

Thanks

exil

Stay employed (not self employed) and you will automatically be credited with contributions towards 2nd state pension (S2P). Self-employed cannot benefit from S2P. You would be able to make contributions towards the standard state pension via National Insurance. If this is the way you want to go, employed is better than self-employed IMO.

If you want to opt out of S2P and make your own arrangements ie personal pension then AFAIK there is nothing to choose between the two options.

But - get advice from an accountant/financial adviser.

Cook_County

1. As you are not domiciled in the UK you can invest outside the UK (eg in France) and pay no tax anywhere on your investments.

2. EU & UK law will permit a UK pension plan to be transfered to a pension plan in your next country.