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  1. #1

    Ddraig Goch


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    Default Pension contribs using umbrella

    OK, so I understand "employer" makes a contribution and "employee" make a contribution.

    In real terms, assuming upper tax bracket, how much is this saving on NI (employer and employee) and PAYE?

    I understand that, if its done afterwards its only tax relief you get so this is better idea?

    My umbrella uses NEST but I've got my own SIPP (Hargreaves Lansdown). Was hoping it would be possible to pay into NEST and then transfer into SIPP whenever I want.
    Rhyddid i lofnod psychocandy!!!!

  2. #2

    My post count is Majestic

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    So you've now got an employer AND an accountant and you still come here to ask. Not just that you could try a search as it's not like you are the only person that's ever been in this situation. Why can't you do a little bit to help yourself before asking?

    Lots of threads
    https://www.google.co.uk/search?q=pe...hrome&ie=UTF-8

    Some more around your situation

    http://forums.contractoruk.com/publi...sacrifice.html

    http://forums.contractoruk.com/accou...ributions.html

    http://forums.contractoruk.com/accou...ributions.html
    Last edited by northernladuk; 21st April 2017 at 13:13.
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  3. #3

    Ddraig Goch


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    Quote Originally Posted by northernladuk View Post
    So you've now got an employer AND an accountant and you still come here to ask. Not just that you could try a search as it's not like you are the only person that's ever been in this situation. Why can't you do a little bit to help yourself before asking?

    Lots of threads
    https://www.google.co.uk/search?q=pe...hrome&ie=UTF-8

    Some more around your situation

    http://forums.contractoruk.com/publi...sacrifice.html

    http://forums.contractoruk.com/accou...ributions.html

    http://forums.contractoruk.com/accou...ributions.html
    NLUK mun - you're like a little yappy dog that follows you around :-)
    Rhyddid i lofnod psychocandy!!!!

  4. #4

    Godlike

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    Quote Originally Posted by psychocandy View Post
    NLUK mun - you're like a little yappy dog that follows you around :-)
    If you wash more regularly, he'll stop following you around.


    And you might get a job.
    Where there's muck there's brass.

  5. #5

    My post count is Majestic

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    Quote Originally Posted by psychocandy View Post
    NLUK mun - you're like a little yappy dog that follows you around :-)
    Well it's either me or TF looking at your last raft of brain farts.
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  6. #6

    Fingers like lightning

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    Quote Originally Posted by psychocandy View Post
    OK, so I understand "employer" makes a contribution and "employee" make a contribution.

    In real terms, assuming upper tax bracket, how much is this saving on NI (employer and employee) and PAYE?

    I understand that, if its done afterwards its only tax relief you get so this is better idea?

    My umbrella uses NEST but I've got my own SIPP (Hargreaves Lansdown). Was hoping it would be possible to pay into NEST and then transfer into SIPP whenever I want.
    Some brollies do it as a salary sacrifice so you get it pre NI. If you claim it back end of year you only get tax relief as I understand. Remember you can only contribute 40k - 10k per year tax free dependent on your income level.

    As long as it is paid into a pension pot, you should be able to consolidate.

  7. #7

    More time posting than coding

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    They will only be able to pay into their own Group Pension Scheme via Salary Sacrifice. In terms of savings take a look at this forums.contractoruk.com/umbrella-companies/120238-tax-saving-through-pension-contributions.html
    Just watching what I say

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  8. #8

    Faqqed Off

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    Quote Originally Posted by lucycontractorumbrella View Post
    They will only be able to pay into their own Group Pension Scheme via Salary Sacrifice.
    That isn't correct - an employer can pay into an SIPP or their own scheme via salary sacrifice.

    The Pensions Advisory Service says:

    Quote Originally Posted by PAS
    Although your employer may choose to contribute to your SIPP, there is no obligation that they do so.
    And the guidance from Pinsent Masons says:

    Quote Originally Posted by Pinsent Masons
    What about defined contribution and personal pension schemes?
    Salary sacrifice can be done in largely the same way as with defined benefit schemes. The employees' salary will be reduced (usually by the amount of the employee's contribution grossed up for the 20% tax relief which the pension scheme would have previously claimed), and the employer will instead contribute this amount to the defined contribution/personal pension scheme.
    So whilst the umbrella company may not want to pay into your SIPP, and is under no obligation to do so, they certainly CAN do it if they wanted to.
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  9. #9

    Ddraig Goch


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    Quote Originally Posted by TheFaQQer View Post
    That isn't correct - an employer can pay into an SIPP or their own scheme via salary sacrifice.

    The Pensions Advisory Service says:



    And the guidance from Pinsent Masons says:



    So whilst the umbrella company may not want to pay into your SIPP, and is under no obligation to do so, they certainly CAN do it if they wanted to.
    Guess this might be the important bit....
    Rhyddid i lofnod psychocandy!!!!

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