• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Danbro - cracking pension/childcare scheme

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    #21
    Originally posted by lucycontractorumbrella View Post
    OK let me explain... the employers NI is a reverse calculation based on taxable earnings for the contractor and not the day rate, therefore anything contributed to via salary sacrifice is reducing the taxable salary and therefore reduces the Employers NI, as such will take into account the pension and childcare vouchers.

    Should be the same theory with any umbrella salary sacrifice pension.
    But they don't all do it. Sterling will only do the minimum as required by law - 1% or something. Some umbrellas offer childcare schemes some don't.
    Rhyddid i lofnod psychocandy!!!!

    Comment


      #22
      <yawn>
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #23
        Originally posted by psychocandy View Post
        More than a few quid. OK so I want to stick £400 a week into my pension say.

        If I went with Sterling, it'd amount to about £25 if I did it via them - because they only do the minimum. The rest (£375) would have to be an AVC. So saving 40% admitedly = £150.

        If the whole £400 goes as salary sactifice then it works out saving about 50% - so £200 saved in tax/NI.

        Better than a poke in the eye.
        I wasn't talking about using an umbrella - heck that bit is easy you just call up Lucy and sign up for the clueful umbrella who posts on here.

        I was talking about your attempts to solve your problems using paystream or other options. Equally I have to ask why you are keeping your company going if you are going to spend the next 6 months / years working inside IR35... You are just creating work and costs for yourself....
        merely at clientco for the entertainment

        Comment


          #24
          Originally posted by eek View Post
          I wasn't talking about using an umbrella - heck that bit is easy you just call up Lucy and sign up for the clueful umbrella who posts on here.

          Comment


            #25
            Originally posted by eek View Post
            I wasn't talking about using an umbrella - heck that bit is easy you just call up Lucy and sign up for the clueful umbrella who posts on here.

            I was talking about your attempts to solve your problems using paystream or other options. Equally I have to ask why you are keeping your company going if you are going to spend the next 6 months / years working inside IR35... You are just creating work and costs for yourself....
            Closing down the company is an option Im looking at. Im in this contract now until jan 2018 maybe longer. At the moment, accountant is charging half monthly only.
            Rhyddid i lofnod psychocandy!!!!

            Comment


              #26
              Originally posted by psychocandy View Post
              Closing down the company is an option Im looking at. Im in this contract now until jan 2018 maybe longer. At the moment, accountant is charging half monthly only.
              Feel to asks us any questions or blog your progress throughout the whole process.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #27
                Are you sure about the Employer NI?

                Originally posted by psychocandy View Post
                Been searching for a while. Some umbrellas are crap for pension and only do the minimum - the rest has go in via AVC so you negate the NI saying.

                Danbro let you treat all pension contributions as employer contribs. So you're saving ALL the NI (inc employer NI I think?). Same with childcare vouchers - but limit is £28 per week assuming you're higher rate tax payer.

                So for most people, its case of £100 in pension or around £50 in pocket. Seems like a good opportunity to me to stick it in pension.

                Thats what I plan to do - when I've finished with umbrella I can then transfer the pot to my existing HL SIPP.
                Are you sure about Employer NI? - what is the Employer/Employee contribution split? They told me on the phone that I could not control the employer contributions (as I used to be able to do with Crystal and then Atlantic - 99%Er/1%Ee) and additional contributions would be 100% Ee.

                Comment


                  #28
                  Originally posted by simes1 View Post
                  Are you sure about Employer NI? - what is the Employer/Employee contribution split? They told me on the phone that I could not control the employer contributions (as I used to be able to do with Crystal and then Atlantic - 99%Er/1%Ee) and additional contributions would be 100% Ee.
                  Yes. Avoid Danbro for now though - they've still not recovered from their monumental **** up 6 weeks ago.

                  Perhaps they dont allow it now. But I paid employer contribs last week.
                  Rhyddid i lofnod psychocandy!!!!

                  Comment


                    #29

                    Comment


                      #30
                      Originally posted by psychocandy View Post
                      Yes. Avoid Danbro for now though - they've still not recovered from their monumental **** up 6 weeks ago.

                      Perhaps they dont allow it now. But I paid employer contribs last week.
                      Thanks for the warning re Danbro.

                      There's an additional wrinkle I'd not appreciated when I first posted. Some umbrella companies appear to use salary-exchange for pension's deductions (Atlantic and Crystal do not) and when this is the case the ER/EE split appears to be irrelevant as far as tax reduction is concerned as both contributions reduce the ER NI. Danbro appears to be one of these, Contractor Umbrella is another, I can't get a straight answer out of Parasol.

                      Out of interest what is the ratio between your current Danbro ER and EE contributions? [The income assessment for a means-tested bursary for my son appears to be reduced by ER pension contributions but not EE ones so it may still be relevant for me.]

                      Comment

                      Working...
                      X