IT contractors 'could be affected by new pensions rules'

IT contractors 'could be affected by new pensions rules'
IT contractors could be hit by new pensions rules being brought in by the government.

The Department for Work and Pensions announced this week that all companies will need to provide a pension scheme for their employees - even if there is only one employee.

This could have a significant impact on IT contractors who operated as an employee of their own limited company, as this will be forced to provide a pension scheme.

According to Contractor Calculator, this looks set to further increase IT contractors' already heavy administrative burden.

"As the rules kick in when an employee earns above a certain limit, contractors may be required to adjust their own salary payments to remain exempt," the website notes.

The Institute of Directors claimed earlier this week that IR35 tax legislation is also too much of a burden, and that it must be simplified by the government as soon as possible.ADNFCR-2994-ID-800207610-ADNFCR
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