Pension Planning for Contractors: Inside and Outside IR35

Last Updated On:
February 25, 2026
About 5 min. read
Written By
Written By
Arun Sahota
Private Wealth Partner
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What This Article Helps You Understand

  • How IR35 status changes pension contribution mechanics
  • The difference between employer and personal contributions
  • Why inside IR35 does not eliminate pension planning value
  • How outside IR35 allows structured extraction
  • How carry-forward and taper interact for contractors
  • Where contractors commonly lose efficiency

FAQs

Do contractors benefit from pension contributions?
Is employer contribution possible inside IR35?
Does taper apply to contractors?
Is carry-forward relevant for contractors?
Should contractors prioritise pensions over dividends?
Does IR35 remove pension tax relief?
Written By
Arun Sahota
Private Wealth Partner
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Arun Sahota is a UK-regulated Private Wealth Partner at Skybound Wealth, advising high-net-worth and ultra-high-net-worth families, business owners, and senior executives with complex UK and cross-border financial planning needs.

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