Pension contributions when working through an Umbrella

[northernladuk]

Actually, it sounds like it's your loss, not theirs.

Indeed. Agencies will be getting kickbacks from who they have on the PSL so no loss at all. Quite the opposite.

[moggy]

i am sure not all agencies will be getting "kick backs" for their PSL - some will though i am sure.

I wonder if the pension providers are offering a similar deal to the umbrella though? Umbrella "A" picks one provider.. for what reason.. why not make the payment into the personal scheme

[lucyclarityumbrella]

I wonder if the pension providers are offering a similar deal to the umbrella though? Umbrella "A" picks one provider.. for what reason.. why not make the payment into the personal scheme

We get nothing from the pension provider and I think there is some legislation against this or there is with IFA's. We stick with our group pension scheme so that it doesn't become an administrative nightmare for all parties, both with the pension provider uploads and pensions regulator when it comes to reporting requirements for it all. We also chose it as Scottish Widows have no exit fees, so once a contractor has finished their assignment, they are free to move it to existing pensions, or as we have seen many transfer across to the Scottish Widows one

[northernladuk]

i am sure not all agencies will be getting "kick backs" for their PSL - some will though i am sure.

If they have a completely inflexible list I am pretty sure the the vast majority will be. Why else would they be so inflexible? Particularly if it's the same big ones coming up.

[ASB]

Have you seen any government docs on this?

There was an hmrc consultation last august on salary sacrifice in general. This caused some changes. Hmrc then stated saliry sacrifice on pension would continue to be allowed as employer contributions.

I think therefore that there is a possibility of it being reviewed in due course.

[lucyclarityumbrella]

I think therefore that there is a possibility of it being reviewed in due course.

I'll see if I can do some digging

[moggy]

If they have a completely inflexible list I am pretty sure the the vast majority will be. Why else would they be so inflexible? Particularly if it's the same big ones coming up.

My guess would be:

Regarding the same big ones always coming up, If the Umbrella pay a person in a non-compliant fashion the agency would be liable. So why compliance check a small company when you can just pick the big players, I would guess they all charge similar amounts.

They also benefit from having a relationship with the company paying their temps, who earn them much more than any "kick back"

I'd like to think some are not in it for just the money, and small fry too.

[northernladuk]

My guess would be:

Regarding the same big ones always coming up, If the Umbrella pay a person in a non-compliant fashion the agency would be liable. So why compliance check a small company when you can just pick the big players, I would guess they all charge similar amounts.

They also benefit from having a relationship with the company paying their temps, who earn them much more than any "kick back"

I'd like to think some are not in it for just the money, and small fry too.

You forget you are talking about agents here. They'd sell their own mothers false teeth if they could.

But if you like that nice thought then keep it. Am sure there are a few out there that fit your model.

[ASB]

I'll see if I can do some digging

https://www.gov.uk/government/consul...nefits-in-kind