Reply to: Danbro - cracking pension/childcare scheme

[Old Greg]

Have you asked your accountant employer Job Centre Plus Personal Adviser?

FTFY

[lucyclarityumbrella]

[northernladuk]

Probably do? Whats ER/EE?

diolch yn fawr ;-)

Have you asked your accountant employer?

[psychocandy]

Do you need a translator psychocandy?

Probably do? Whats ER/EE?

diolch yn fawr ;-)

[lucyclarityumbrella]

ER/EE?

Do you need a translator psychocandy?

[psychocandy]

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.]

ER/EE?

[simes1]

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.]

[BR14]

[psychocandy]

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.

[simes1]

Are you sure about the Employer NI?

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.

[northernladuk]

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.

[psychocandy]

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.

[lucyclarityumbrella]

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.

[eek]

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....

[northernladuk]

<yawn>