How much can I earn with overtime without going into the higher tax bracket?

Flugelhorn

jimi_man said:

[Deleted User] said:

Albermarle said:

You could make enough extra pension contributions to get tax relief of 40% on the contributions.
Some or all of the relief, would go into the pension rather than back to you, but it would maybe make the overtime more worthwhile, knowing you would benefit from an increased pension/earlier retirement.

Yes - that may be true, but you could end up paying more tax on the extra pension when you retire.  It's called deferred tax!!  No such thing as a free lunch I'm afraid.

That's unlikely. It's fairly easy to control this and in this situation is likely to get 40% relief on the way in and only pay 15% on the way out. 

But how can you control it in a DB pension?

jimi_man

Flugelhorn said:

jimi_man said:

[Deleted User] said:

Albermarle said:

You could make enough extra pension contributions to get tax relief of 40% on the contributions.
Some or all of the relief, would go into the pension rather than back to you, but it would maybe make the overtime more worthwhile, knowing you would benefit from an increased pension/earlier retirement.

Yes - that may be true, but you could end up paying more tax on the extra pension when you retire.  It's called deferred tax!!  No such thing as a free lunch I'm afraid.

That's unlikely. It's fairly easy to control this and in this situation is likely to get 40% relief on the way in and only pay 15% on the way out. 

But how can you control it in a DB pension?

You don't have to pay it into a DB pension, you can pay it into a SIPP.

Flugelhorn

[Deleted User] said:

nigelbb said:

[Deleted User] said:

As an aside - locums are self employed and you need to register as such. They are also responsible for declaring income to the NHS pension scheme. 

This is going to depend on the job role but in general IR35 has ended the days of self employed locums.

I have yet to come across a locum doctor under IR35 although NI is a small place. The accountancy practice for whom I still provide some assistance currently has over one hundred self-employed locums on their books. I am not sure how pension contributions are contributed under IR35.

I don't know anyone who has used anything other than straightforward self employed - send the bill to the practice and get paid, tot it all up at the end of the month and send the Superannuation to the big pot in wherever and tot it up at the end of the year to do the self assessment - suspect rarely becomes a problem unless the locum is there for 3-6 months and nowhere else

[Deleted User]

Flugelhorn said:

[Deleted User] said:

nigelbb said:

[Deleted User] said:

As an aside - locums are self employed and you need to register as such. They are also responsible for declaring income to the NHS pension scheme. 

This is going to depend on the job role but in general IR35 has ended the days of self employed locums.

I have yet to come across a locum doctor under IR35 although NI is a small place. The accountancy practice for whom I still provide some assistance currently has over one hundred self-employed locums on their books. I am not sure how pension contributions are contributed under IR35.

I don't know anyone who has used anything other than straightforward self employed - send the bill to the practice and get paid, tot it all up at the end of the month and send the Superannuation to the big pot in wherever and tot it up at the end of the year to do the self assessment - suspect rarely becomes a problem unless the locum is there for 3-6 months and nowhere else

Indeed - I believe it is six months. I know of quite a few who work five months, break for at least one month, and go back again. Salaried GPs are so expensive now as a result of the big increase in employer contributions.

Flugelhorn

[Deleted User] said:

Flugelhorn said:

[Deleted User] said:

nigelbb said:

[Deleted User] said:

As an aside - locums are self employed and you need to register as such. They are also responsible for declaring income to the NHS pension scheme. 

This is going to depend on the job role but in general IR35 has ended the days of self employed locums.

I have yet to come across a locum doctor under IR35 although NI is a small place. The accountancy practice for whom I still provide some assistance currently has over one hundred self-employed locums on their books. I am not sure how pension contributions are contributed under IR35.

I don't know anyone who has used anything other than straightforward self employed - send the bill to the practice and get paid, tot it all up at the end of the month and send the Superannuation to the big pot in wherever and tot it up at the end of the year to do the self assessment - suspect rarely becomes a problem unless the locum is there for 3-6 months and nowhere else

Indeed - I believe it is six months. I know of quite a few who work five months, break for at least one month, and go back again. Salaried GPs are so expensive now as a result of the big increase in employer contributions.

And most of the locums want to keep the flexibility even if they are offered substantive jobs - must make planning hard sometimes. Before the length of time thing became significant  (yes 6/12 sounds right) I used to find myself working regularly at a practice for half a year or so without noticing -  time slips by

nigelbb

[Deleted User] said:

nigelbb said:

[Deleted User] said:

As an aside - locums are self employed and you need to register as such. They are also responsible for declaring income to the NHS pension scheme. 

This is going to depend on the job role but in general IR35 has ended the days of self employed locums.

I have yet to come across a locum doctor under IR35 although NI is a small place. The accountancy practice for whom I still provide some assistance currently has over one hundred self-employed locums on their books. I am not sure how pension contributions are contributed under IR35.

I said it depends on the job role & from subsequent posts I think that you are probably only referring to locum GPs & not hospital doctors. As far as I am aware no hospital Trust (or whatever they are called in NI) will be permitted to employ a locum doctor (or any other grade or job title) outside IR35.