Contractor Pensions

[northernladuk]

yes I would agree with this, I have contacted my brolly and their pension provider and they are of little help. I was hoping to withdraw my pension an set it up with a SIPP in HL if that is possible.

You are going to have to speak to your brolly I am afraid. They are your employer and handle your pension so first step is to speak them and see what is possible first.

Your contract with them should lay out the terms of pension plan and who pays what. You could have a read of that but I'd just go speak to them.

[lucyclarityumbrella]

I think my contribution is relatively low at the moment but can you tell me whether they, as my employer, are bound to contribute to my pension also? My gross pay is around £1258 weekly and given expenses etc taken into account my take home is around £920-940 on average. Is there a way to secure a decent contribution whilst minimising the reduction in my take home pay?
Thanks

First of all..... expenses???? Oh dear please tell me they are not tax relief on expenses? Your take home should be around £784, so if this comes back and bites you, the pension might be the least of your worries!

As for the contribution, both parts come from the contract rate before your taxable salary is calculated. For us auto enrolment is 3% Employers and 3% Employees, but our contractors can up the Employee contribution as they wish as long as we net NMW. As I said before the best way to look at this is to ascertain what figure you need in your bank account every week / month and then see what this would look like as a pension contribution.

HTHs

[lucyclarityumbrella]

Of have things change and brollys are offering better pension offerings?

Not sure what others do, but we do

[Irishbar]

From what I read in PC and others posts not many Umbrellas are really interested in this though. It's minimum contributions and that's it. They aren't going to be too helpful for longer term planning will they? They exist to meet the requirements of the law and nothing else.

Of have things change and brollys are offering better pension offerings?

yes I would agree with this, I have contacted my brolly and their pension provider and they are of little help. I was hoping to withdraw my pension an set it up with a SIPP in HL if that is possible.

[Irishbar]

Your umbrella should be able to help if you know what you need to net each week / month, but the likelihood is that you will need to pay into their pension scheme in order to gain the tax relief via salary sacrifice. You should also be able to work with their pension provider to help in terms of long term planning for the pension.

Hi Lucy

Many thanks for your help. I get paid into the umbrella and they subtract all the relevant taxes and pensions contribution. I think my contribution is relatively low at the moment but can you tell me whether they, as my employer, are bound to contribute to my pension also? My gross pay is around £1258 weekly and given expenses etc taken into account my take home is around £920-940 on average. Is there a way to secure a decent contribution whilst minimising the reduction in my take home pay?

Thanks

[northernladuk]

Your umbrella should be able to help if you know what you need to net each week / month, but the likelihood is that you will need to pay into their pension scheme in order to gain the tax relief via salary sacrifice. You should also be able to work with their pension provider to help in terms of long term planning for the pension.

From what I read in PC and others posts not many Umbrellas are really interested in this though. It's minimum contributions and that's it. They aren't going to be too helpful for longer term planning will they? They exist to meet the requirements of the law and nothing else.

Of have things change and brollys are offering better pension offerings?

[northernladuk]

[lucyclarityumbrella]

Hi

I was guided here by some helpful advice on other threads so hopefully someone can help me.

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.

Your umbrella should be able to help if you know what you need to net each week / month, but the likelihood is that you will need to pay into their pension scheme in order to gain the tax relief via salary sacrifice. You should also be able to work with their pension provider to help in terms of long term planning for the pension.

[Irishbar]

Pension Contribution for Contractor in Umbrella Company

Hi

I was guided here by some helpful advice on other threads so hopefully someone can help me.

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.

[Fred Bloggs]

HI

First time post...I am a clinician caught under IR35. Can my Umbrella Company deduct the employers pension contribution from my payment if I decide to go with their Pension provider?? They are currently deducting employers NI.

Thanks in advance

Look into salary sacrifice for pension contributions.

[lucyclarityumbrella]

Can my Umbrella Company deduct the employers pension contribution from my payment if I decide to go with their Pension provider?? They are currently deducting employers NI.

Hi Doc1
The employers contribution for pension and NI are deemed to be met from the contract rate before your taxable salary is arrived at. Your salary is only available once the employment costs have been met.
HTHs

[northernladuk]

HI

First time post...I am a clinician caught under IR35. Can my Umbrella Company deduct the employers pension contribution from my payment if I decide to go with their Pension provider?? They are currently deducting employers NI.

Thanks in advance

https://forums.contractoruk.com/acco...a-company.html

In fact here they all are...

https://www.bing.com/search?q=employ...29&adlt=strict

If you are already with an umbrella then ask them, they are your employer and should be your first port of call for issues related to your employment.

If you aren't with one already then speak to ContractorUmbrella. Lucy who runs the show is a regular contributor here. They also have a pretty comprehensive page on pensions here...

https://www.contractorumbrella.com/pension.html

[Doc1]

HI

First time post...I am a clinician caught under IR35. Can my Umbrella Company deduct the employers pension contribution from my payment if I decide to go with their Pension provider?? They are currently deducting employers NI.

Thanks in advance