Pension changes - can someone explain?

atush

I am saying their are two rates of voluntary contributions. The Self employed one is far smaller, and the regular one is about 700 quid a year.

So, if he isn't claiming benefits, and registered as self employed, you would find his contributions would be slashed in cost (ie abt 2.30 week I think but check). Which would you rather pay, 700 a year, or 120?

pimento

Ah, so even if he isn't doing any paid work, he can register as a self employed person and pay less for contributions. Would being self employed mean that he would have to complete a self assessment form?

atush

Well, you can ask some here. Some say they register as a Sage, or prophet etc and don't have a salary as such. but don't know how legal that is, or if there could be any problems. If he did anything on his own and made a few quid, then he could register. Dog walker? House sitter? I don't know.

And I am presuming (but not sure) if he earns only a few hundred or less per year you don't have fill fill in self assessment forms as he would be well under his PA. But you'd need to check the rules with HMRC.

pimento

Some food for thought. Thank you.