Umbrella contractor - are you changing anything post budget?

[youngguy]

Took me a while to be able to sit down and write this after the shafting today

Given the changes to pensions and salary sacrifice from 2029, is anyone changing their strategy?

I am salary sacrificing £30k a year but due to being under a brolly I have the pleasure of covering the additional Ni costs - 15% in total.

I'm toying with increasing sal sacrifice now (although that means less take home), but I still have a ltd, wondering whether to make additional payments from that.

However I cut it, GPT tells me I will be working a year or two later or my pension pot will be several hundred K smaller. Deep joy!

[jamesbrown]

If you can afford to, it would make sense to max out your pension contributions between now and April 2029. I don't believe there was anything else that you could really take any steps to mitigate, it was mostly stealth taxes and small/random stuff.

[youngguy]

I'm correcting myself. As things stand it states "All employer pension contributions will continue to be free of NICs."

How much this all changes before 2029 is anyone's guess!



https://www.gov.uk/government/public...-for-employers

[jamesbrown]

I'm correcting myself. As things stand it states "All employer pension contributions will continue to be free of NICs."

How much this all changes before 2029 is anyone's guess!



https://www.gov.uk/government/public...-for-employers

Yes, this was made clear in the budget speech too and the prior briefing/leaks. They are targeting SalSac arrangements, specifically, not employer contributions in general.