Personal pension contributions

[Irishbar]

Pension Contribution through Umbrella Company

Hi all.

Can someone please give me some guidance with regards to my options on a pension contribution. I work through an Umbrella Company at the moment (due to IR35) I know now that I currently contribute very little to the company pension but I was to withdraw this and invest in a SIPP with HL. I just want to know the optimal amount to be investing each week for tax efficiency purposes (al also to built a sufficient nest egg for myself). I would hope to pay this from my gross pay in order to reduce my tax bill.

I can give you the run down of my figures if this helps?

Any help would be greatly appreciated.

[northernladuk]

Hi all.

Can someone please give me some guidance with regards to my options on a pension contribution. I work through an Umbrella Company at the moment (due to IR35) I know now that I currently contribute very little to the company pension but I was to withdraw this and invest in a SIPP with HL. I just want to know the optimal amount to be investing each week for tax efficiency purposes (al also to built a sufficient nest egg for myself). I would hope to pay this from my gross pay in order to reduce my tax bill.

I can give you the run down of my figures if this helps?

Any help would be greatly appreciated.

Can you even do that? The Umbrella has to provide you one by law. You could change Umbrella to Contractor Umbrella who allow any amount of contributions and I believe use Scottish Widows who are pretty OK. Lucy posts a lot on here and might respond but if I were you I'd give CU a bell and chat it over with them.

I'd check your options with your brolly first before running the numbers.

[Lance]

Can you even do that? The Umbrella has to provide you one by law. You could change Umbrella to Contractor Umbrella who allow any amount of contributions and I believe use Scottish Widows who are pretty OK. Lucy posts a lot on here and might respond but if I were you I'd give CU a bell and chat it over with them.

I'd check your options with your brolly first before running the numbers.

There isn't an advantage to doing it like this though, I don't think.
Might as well just pay from personal cash into a SIP and get 20/40% for free from the government.

[northernladuk]

There isn't an advantage to doing it like this though, I don't think.
Might as well just pay from personal cash into a SIP and get 20/40% for free from the government.

If he does through CU he can contribute as much as he wants. All of it if suits him so no tax to pay. A good option for warchest heavy contractors dipping in to an inside gig who can put the entire income in to the scheme.

[Lance]

If he does through CU he can contribute as much as he wants. All of it if suits him so no tax to pay. A good option for warchest heavy contractors dipping in to an inside gig who can put the entire income in to the scheme.

cool.

Here's a question though... If you do a 3/4/5 monther, and put a whole £40k in won't the government extra added to the pension be greater than the tax paid for the gig????

[northernladuk]

cool.

Here's a question though... If you do a 3/4/5 monther, and put a whole £40k in won't the government extra added to the pension be greater than the tax paid for the gig????

Dunno.

HTH

[Lance]

HTH

DIF

[northernladuk]

DIF

DILLIGAF

[barrydidit]

cool.

Here's a question though... If you do a 3/4/5 monther, and put a whole £40k in won't the government extra added to the pension be greater than the tax paid for the gig????

They don't add anything for company contributions.

[Lance]

They don't add anything for company contributions.

that's for a personal contribution.
Pay attention at the back.