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Contracting out and back in, SERPS, S2P and New State Pension
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The self employed were big winners too.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.3
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Maybe, but tbf my impression of the system for a long time was that the self employed got a raw deal on NI. If they paid the stamp as a higher SE earner they got no extra benefit from it to the best of my knowledge (this group included me for a few years) as opposed to PAYE who got SERPS or equiv.dunstonh said:The self employed were big winners too.
That's just an 'impression' though, no real knowledge back then, so I do stand to be corrected if I'm wrong.0 -
SomeMadeUpName said:
Maybe, but tbf my impression of the system for a long time was that the self employed got a raw deal on NI. If they paid the stamp as a higher SE earner they got no extra benefit from it to the best of my knowledge (this group included me for a few years) as opposed to PAYE who got SERPS or equiv.dunstonh said:The self employed were big winners too.
That's just an 'impression' though, no real knowledge back then, so I do stand to be corrected if I'm wrong.But SE NI conts were around 8% or so from memory, compared to around 25% employee plus employer conts for non SE. Used to be no SERPS/S2P accrual for the SE but then they got accrual for the full new state pension which replaced both basic & SERPS, backdated too for those who reached state pension age after April 2016.So the SE were definitely big winners!
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OK, fair enough.zagfles said:SomeMadeUpName said:
Maybe, but tbf my impression of the system for a long time was that the self employed got a raw deal on NI. If they paid the stamp as a higher SE earner they got no extra benefit from it to the best of my knowledge (this group included me for a few years) as opposed to PAYE who got SERPS or equiv.dunstonh said:The self employed were big winners too.
That's just an 'impression' though, no real knowledge back then, so I do stand to be corrected if I'm wrong.But SE NI conts were around 8% or so from memory, compared to around 25% employee plus employer conts for non SE. Used to be no SERPS/S2P accrual for the SE but then they got accrual for the full new state pension which replaced both basic & SERPS, backdated too for those who reached state pension age after April 2016.So the SE were definitely big winners!0
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