pension payments after April 2020

[Amanensia]

Some employers even contribute the saved employers NI into the pension. I'd be surprised if an umbrella did this though.

I'd be stunned if they don't! Granted many may not permit sacrifice, but if they do, there can't be any justification for them retaining the employer's NI saved.

[fidot]

OK, but I guess we will have to see what happens.

Not all employers offer salary sacrifice, so it follows that not all umbrella companies will either.
While tax sorts itself out at year end, you lose employee NI unless you can salary sacrifice. Shop around for an umbrella that allows this.
Some employers even contribute the saved employers NI into the pension. I'd be surprised if an umbrella did this though.

[JohntheBike]

You seem to be getting confused with Inside IR35 and going via an Umbrella. They are completely different things.

The pensions discussions here are regarding going via an Umbrella.

OK, but I guess we will have to see what happens.

[Amanensia]

HMRC have already announced that anyone judged inside by a client will not be allowed to deduct pension payments from gross income prior to deduction of taxes.

Really? Does this just apply to formally "inside" roles - ie limited company contractors with an inside determination? Presumably anyone in such a situation who wants to make significant pension contributions would just go with an umbrella that's happy to process large contributions.

[Paralytic]

HMRC have already announced that anyone judged inside by a client will not be allowed to deduct pension payments from gross income prior to deduction of taxes. The requirement to operate auto enrolment would seem to counter this. That's why I say that any auto enrolment which doesn't deduct the pension prior to deducting the taxes might be challenged legally at some point.

You seem to be getting confused with Inside IR35 and going via an Umbrella. They are completely different things.

The pensions discussions here are regarding going via an Umbrella.

[JohntheBike]

You are allowed to opt out of auto enrollment for 3 years at a time.

I thought pension was from gross so no need to challenge in court.

HMRC have already announced that anyone judged inside by a client will not be allowed to deduct pension payments from gross income prior to deduction of taxes. The requirement to operate auto enrolment would seem to counter this. That's why I say that any auto enrolment which doesn't deduct the pension prior to deducting the taxes might be challenged legally at some point.

[northernladuk]

aren't organisations of greater than 50 employees obliged to auto enrol employees into pension schemes? Then if they don't allow pension contributions to be deducted from gross prior to taxes being applied, I can see someone challenging this in court. But as a previous poster indicated, HMRC's approach is tax first and deal with the fall out later.

You are allowed to opt out of auto enrollment for 3 years at a time.

I thought pension was from gross so no need to challenge in court.

[JohntheBike]

I'm not sure what the umbrella companies off you but you can also put money into a private pension to gain your 40% tax relief.

Another thing I'm not sure about is whether that money would be exempt from the employee and employer NI contributions (I doubt it)

aren't organisations of greater than 50 employees obliged to auto enrol employees into pension schemes? Then if they don't allow pension contributions to be deducted from gross prior to taxes being applied, I can see someone challenging this in court. But as a previous poster indicated, HMRC's approach is tax first and deal with the fall out later.

[BR14]

CU offer a salary sacrifice pension scheme.
payment is gross of NI and tax.

i think Clarity do too.
they both post on here.

[JoJoGabor]

I'm not sure what the umbrella companies off you but you can also put money into a private pension to gain your 40% tax relief.

Another thing I'm not sure about is whether that money would be exempt from the employee and employer NI contributions (I doubt it)

[steveb183]

so assuming IR35 reform goes ahead whoever wins today !

my question as a contractor of 20 years is this, if I'm taxed as an employee....presumably of the agency i'm forced to work thru .....will I be able to join their work place pension scheme and pay a chunk into that each month before tax .....or will that be another employee benefit I wont be receiving in addition to the others.