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Reply to: SIPP with umbrella

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Previously on "SIPP with umbrella"

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  • SimonMac
    replied
    Originally posted by Irishbar View Post
    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

    Leave a comment:


  • SimonMac
    replied
    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

    Leave a comment:


  • Irishbar
    replied
    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.

    Leave a comment:


  • northernladuk
    replied
    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.
    Last edited by northernladuk; 21 January 2021, 23:09.

    Leave a comment:


  • Irishbar
    replied
    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

    Leave a comment:


  • eek
    replied
    Originally posted by win10 View Post
    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.

    Leave a comment:


  • WTFH
    replied
    Originally posted by win10 View Post
    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?

    Leave a comment:


  • win10
    replied
    Originally posted by northernladuk View Post
    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.

    Leave a comment:


  • northernladuk
    replied
    Originally posted by win10 View Post
    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!!!!

    Leave a comment:


  • win10
    replied
    Originally posted by lucyclarityumbrella View Post
    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?

    Leave a comment:


  • lucyclarityumbrella
    replied
    Originally posted by win10 View Post
    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.

    Leave a comment:


  • win10
    replied
    Originally posted by eek View Post
    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?
    Last edited by win10; 17 November 2020, 13:34.

    Leave a comment:


  • lucyclarityumbrella
    replied
    Originally posted by win10 View Post
    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.

    Leave a comment:


  • eek
    replied
    Originally posted by win10 View Post
    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.

    Leave a comment:


  • win10
    replied
    Originally posted by eek View Post
    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

    Code:
    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

    Code:
    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.

    Leave a comment:

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