Umbrella calculating SIPP salary sacrifice

[gizzmo]

what umbrella is that as they seem half decent and £60 is cheap

I would also be keen to know which Umbrella this is...@gisp - are you able to share?

[lucyclarityumbrella]

There is holiday pay added because I dont want it accumulated. Are you saying they putt less into SIPP so they can account for the holiday too? Sounds right.

Absolutely spot on the basic pay plus holiday is the minimum to ensure that they abide by regulations if paying across solely as Ers contribution.

[eek]

Yep - now I’ve seen the full payslip the difference is the holiday pay I expected it to be.

what umbrella is that as they seem half decent and £60 is cheap

[gisp]

Thanks eek.
this is the full calculation:

Company Income & Deductions

Total Company Income paid£ 9,000.00
Margin: £ 60.00 £
Employment Costs: £ 148.75
Contribution to Private Pension / SIPP £ 7,098.06


Your Payment Details

Salary: £ 1,497.87
Holiday Pay:£ 195.32


Deductions From Your Pay

Tax: ££ 129.14
National Insurance: £ 114.86


Payments

Net Salary: £ 1,449
Payment to Your Pension: £ 7,098

There is holiday pay added because I dont want it accumulated. Are you saying they putt less into SIPP so they can account for the holiday too? Sounds right.

[eek]

Hi all,

first time with umbrella with a new inside ir35 contract. (boomed).
I am thinking of putting the maximum amount per month into SIPP leaving me with only minimum wage.

Umbrella gave me the following calculation

day rate £450.
4 weeks £9000.
Margin £60.
SIPP SS - £7098
taxes and 2xNICs+AL = 129+114+148 (rounded)
Net pay 1449

They also said SS can be upto 83%, but in the above example it is 79.xx%.

What am I missing?

If I want to get MNW it must be 150h*£8.72=£1308 less personal tax+eeNIC. So I get less than 1308 net.

I understand there will be some overhead in form of erNIC+AL on the NMW, lets say 14.5% of £1308=£189.
This is crude because no NICs on < £8300.

So why dont they offer
SIPP SS of 8940-189-1308=7443 for SIPP SS?

Because you are missing out holiday pay which is being rolled up so adds another 10.6% to the hours you need to be paid for.

Being blunt it also doesn't matter - and I post this more for other people than for you:--

The figures add up so you know exactly where all 100% of your monthly invoice has gone
You've put 80% of that money into a pension
The percentage of tax on your income is 4.3% - No scheme is going to beat that.


I will also add these calculations are actually very difficult to do directly (there is a lot of if this then go back with this new figure) which makes getting this perfect very hard work for little actually benefit.

[gisp]

Hi all,

first time with umbrella with a new inside ir35 contract. (boomed).
I am thinking of putting the maximum amount per month into SIPP leaving me with only minimum wage.

Umbrella gave me the following calculation

day rate £450.
4 weeks £9000.
Margin £60.
SIPP SS - £7098
taxes and 2xNICs+AL = 129+114+148 (rounded)
Net pay 1449

They also said SS can be upto 83%, but in the above example it is 79.xx%.

What am I missing?

If I want to get MNW it must be 150h*£8.72=£1308 less personal tax+eeNIC. So I get less than 1308 net.

I understand there will be some overhead in form of erNIC+AL on the NMW, lets say 14.5% of £1308=£189.
This is crude because no NICs on < £8300.

So why dont they offer
SIPP SS of 8940-189-1308=7443 for SIPP SS?