Reply to: SIPP with umbrella

[SimonMac]

Hi
Can anyone please help me with an issue I have?
I’m joining a new Umbrella company as they allow personal pension contributions via salary sacrifice. They support Hargreaves Lansdown and AJ Bell but can anyone help me through the process on setting one up with either of these two firms (recommendation appreciated) and providing the information to the umbrella company to allow them to contribute via salary sacrifice ??

Many Thanks

See this for the details from HL that you will need to give to AJ Bell

http://www.hl.co.uk/__data/assets/pd...k-transfer.pdf

[SimonMac]

Just a heads up, I signed up to NASA umbrella so I could pay into a HL SIPP, seamless process and no issues at all.

Would recommend

[Irishbar]

Hi northernladuk

Thanks for your input. I was simply asking a question and was not sure which thread to post the query. My question related to the set up and whether I could pass on the info to the Umbrella Company as simply as that without any hiccups. Have a good weekend and maybe sit down with a cuppa and de-stress, it’s Friday.

[northernladuk]

Erm.. You what? You want us to step you through filling a form in and passing the relevant details to the umbrella?

Edit. Oh. It's OK. So I see you jumped on someone else's thread again and spammed the same question and got an answer on that one as well. Nice going.

[Irishbar]

Setting up a New SIPP - Process

Hi
Can anyone please help me with an issue I have?
I’m joining a new Umbrella company as they allow personal pension contributions via salary sacrifice. They support Hargreaves Lansdown and AJ Bell but can anyone help me through the process on setting one up with either of these two firms (recommendation appreciated) and providing the information to the umbrella company to allow them to contribute via salary sacrifice ??

Many Thanks

[eek]

Does that mean if you negotiate less hours per week with brolly to the tune of £732/month, you wont pay any NICs and tax?
Arent all brolly contracts in effect zero hour?

But still wouldn't the SS kick in first before tax and NICs?

No because the umbrella has to pay you the national minimum wage and that will be based on the typical hours as set by your agency by the end client. So it's going to be a minimum of 7 hours a day and possibly 8.

[WTFH]

I am not saying you are wrong. I just want to understand it. How the above reconcile with the £214 deductions of £5000/m?

Did you get your IR35 question answered the last time?

[win10]

Yes he is Lucy. He says you dont know your arse from your elbow and he'd like a cup of tea please.

Finish him!!!!

You trolling and spamming again. Fine.

[northernladuk]

I am not saying you are wrong. I just want to understand it. How the above reconcile with the £214 deductions of £5000/m?

Yes he is Lucy. He says you dont know your arse from your elbow and he'd like a cup of tea please.

Finish him!!!!

[win10]

In simple terms - paying into a pension via salary sacrifice will reduce all tax and NI contributions

I am not saying you are wrong. I just want to understand it. How the above reconcile with the £214 deductions of £5000/m?

[lucyclarityumbrella]

Does that mean if you negotiate less hours per week with brolly to the tune of £732/month, you wont pay any NICs and tax?
Arent all brolly contracts in effect zero hour?

But still wouldn't the SS kick in first before tax and NICs?

The brolly will look at the actual hours worked in the calculations, and then refer to the NICs thresholds to see what applies each time payment is made.

[win10]

Because the Government determines the point at which NI and tax is paid and that might be lower than the minimum wage - so people always pay some tax.

Does that mean if you negotiate less hours per week with brolly to the tune of £732/month, you wont pay any NICs and tax?
Arent all brolly contracts in effect zero hour?

But still wouldn't the SS kick in first before tax and NICs?

[lucyclarityumbrella]

Why would you put tax and NICs on the minimum wage?

Because on £8.72 per hour, assuming 37.5 hours a week, the annual taxable salary is just over £17k, so above the £12,500 threshold at which tax kicks in.

[eek]

Why would you put tax and NICs on the minimum wage? If it was the minimum wage per month (not £5000) only can one do SS on it all? So no tax and NICs?
Brolly fee is payable of course.

Because the Government determines the point at which NI and tax is paid and that might be lower than the minimum wage - so people always pay some tax.

[win10]

For the salary sacrifice bit we need to work backwards and first work out the lowest amount the agency must legally pay:

Your salary needs to be at least £8.72 (min wage) * 35 (hours) * 4.33 (weeks per calendar month) or £1321.51 a month before employee taxes

Monthly min pay £1321.51
Income tax        £55.80
Employee NI       £72.30

Net take home    £1193.42

And going the other way to get the employer tax payments

Salary             £1321.51
Employers NI      £83.15
Employment tax    £3.33
Margin                £95.00

Total paid out  £1502.99

amount left     £3497.01 paid into the pension

Why would you put tax and NICs on the minimum wage? If it was the minimum wage per month (not £5000) only can one do SS on it all? So no tax and NICs?
Brolly fee is payable of course.