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    Default Pension contributions when working through an Umbrella

    I assume that pension contributions cannot be made before tax, so it would be a personal contribution and 20% would be added to the value, again I assume as I would be higher rate tax payers I could claim back more on my SA?
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    It depends on the umbrella - some offer the absolute bare legal minimum others (contractor umbrella) allow you to sacrifice your entire salary once they have paid you the legal minimum of the living wage....

    My advice would be to shop around and explicitly ask about their pension options....
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    Quote Originally Posted by InsertWittyNameHere555 View Post
    I assume that pension contributions cannot be made before tax, so it would be a personal contribution and 20% would be added to the value, again I assume as I would be higher rate tax payers I could claim back more on my SA?
    Pension contributions can be made via salary sacrifice into the group pension scheme (giving you tax and NI savings), they cannot be paid the same way into your personal scheme. You would have to make that contribution from your net pay, the go down the route of claiming it via SA.

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    Quote Originally Posted by lucycontractorumbrella View Post
    Pension contributions can be made via salary sacrifice into the group pension scheme (giving you tax and NI savings), they cannot be paid the same way into your personal scheme. You would have to make that contribution from your net pay, the go down the route of claiming it via SA.

    HTH
    They can be paid into a personal scheme, but most (probably all) umbrellas choose not to do that. But there is nothing that prevents your employer paying into an existing scheme.
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    Salary sacrifice gives a very real saving since the money doesn't get charged to ni whice personal contributions from salary will have been.

    In effect double savings since ers ni is saved too. In a proper umbrella scenario thatcash of course comesout ofyour rate

    But.....

    Salary sacrifice is in the firing line. It may not last much longer on pension contributions.

    Personal schemes can accep employer contributions but must know. Theg can of course choose not to.
    Last edited by ASB; 9th July 2017 at 08:28.

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    This is a good overview, provided by Lucy at ContractorUmbrella, and gives some real world figures based on a 500/day rate.

    So you want to save tax using an umbrella company pension? :: Contractor UK
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    At the moment, umbrellas legally have to offer a pension. Great I thought, chance to save on employers NI, employees NI tax the lot.

    But, most umbrellas just can;t be arsed to let you pay more this way. Sterling won't. I ended up with something crap like 10 employer contribution, 10 employee contribution.

    Contractor Umbrella will I think but my agency wont work with them (agencies loss).

    Not sure how much hassle it for agencies but surely they should make an effort? There should be no difference in take home so surely its in their interests to offer things like this. As well as childcare vouchers- some cant be bothered here either.

    Unfortunately, it appears some umbrellas will just do absolute minimum for their money.
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    Quote Originally Posted by ASB View Post
    But.....
    Salary sacrifice is in the firing line. It may not last much longer on pension contributions.
    Have you seen any government docs on this?
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    Quote Originally Posted by psychocandy View Post
    But, most umbrellas just can;t be arsed to let you pay more this way.
    How many umbrellas have you asked to come up with the idea that "most" won't do it?

    Quote Originally Posted by psychocandy View Post
    Contractor Umbrella will I think but my agency wont work with them (agencies loss).
    Actually, it sounds like it's your loss, not theirs.
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