Umbrellas which offer 'Salary-Sacrifice' pensions

[jbeer]

Yet you talk about an £18 payroll run.

Which isn't exactly expensive and means that the service you are going to receive is designed to be as automated as possible. Perhaps the issue is that you need to ring more companies and not pay so much attention to the price.

I've already suggested thats the reason why they wont do it. I think you really need to go back and reread everything that i've said. Unfortunately, none of the other companies that i've yet to try are open at the weekend - hence why I thought this forum might be useful to save me some time or wasting my time getting the same response - didn't think that was unreasonable. But ended up wasting my time on here instead by the look of things.

Please don't assume everyone coming on here is some wet behind the ears newbie.

One more time : Does anyone know of an UC that can vary your salary/Salary sacrifice pension contributions throughout the year in order to max out on your pension based on an irregular working pattern ?

Not looking for an opinion, not looking for someone to come on with some comment to show that they know something, just looking for facts, i.e. if you don't know the answer please don't respond.

Thanks

[ladymuck]

Friend of mine is doing pension contributions via Contractor Umbrella (was forced to pick a old-boys club member or she would have gone with Clarity). I think the biggest challenge is sporadic charging as, IIRC, umbrellas are geared up for regular work not ad hoc.

[gizzmo]

You don't mention which Umbrellas you have spoken to. Have you tried speaking to Parasol? I am with them - and i spoke to them at great length about pensions before i signed up with them. They did agree with me a monthly amount which took account of National minimum wage as well as all their employer costs. In Jan I only worked 3 weeks - so when i got the payslip last week it shows approx 3/4th of the agreed monthly amount being deducted - and the remainder from the agreed monthly contribution amount is shown as carried forward.
The pensions team were very helpful in explaining and providing me with breakdown amounts even though i hadn't joined yet. What they do is once they have worked out your pay - the pension doesn't get sent to your provider until the 25th of the month - they advise you in advance how much they will pay and on what date - and then you go and fill in your provider's additional employer contribution form with the exact amount - so they leave the comms with your provider up to you.
I too asked if i could change the fixed amount ad hoc - which they didn't really want to encourage as its a systems limitation - and it makes it more complicated for them - however they are happy to accommodate occasional changes as long as its communicated well in advance of your payroll date.
In my case i am happy to exceed the 40k annual allowance - as although i will still need to pay tax on the amount over 40K at my tax rate - I still save on the national insurance - and it keeps me in the basic rate tax band.

[Paralytic]

One more time : Does anyone know of an UC that can vary your salary/Salary sacrifice pension contributions throughout the year in order to max out on your pension based on an irregular working pattern ?

I suspect your rather long-winded writing style has meant the UCs did not understand your question.

Why not just ask them: Can I change my pension contribution every month? If so, how much notice do you need? If not, how often can i change it.

That's the question i believe you're asking here too, but you spend too many words doing so, covering what now turns out to be irrelevant stuff, and sent people down all sort of other paths.

I've heard that UCs DO allow the changing of pension contributions, but have no experience of that, and I suspect they'd want to limit that to a reasonable number of times each yet.

[jbeer]

I suspect your rather long-winded writing style has meant the UCs did not understand your question.

Why not just ask them: Can I change my pension contribution every month? If so, how much notice do you need? If not, how often can i change it.

That's the question i believe you're asking here too, but you spend too many words doing so, covering what now turns out to be irrelevant stuff, and sent people down all sort of other paths.

I've heard that UCs DO allow the changing of pension contributions, but have no experience of that, and I suspect they'd want to limit that to a reasonable number of times each yet.

Sorry but you have no idea how my conversation went with the UCs. For the record, I did ask them this and they told me no. I added the detail in with regards to my situ to explain why I need to do this and because people gave answers initially that wouldn't work - totally relevant.

Anyway, I'm done with this - won't be responding to any further posts making incorrect assumptions.

Thanks to the 2 preceding posters - will check out the UCs that you mention.

[eek]

Sorry but you have no idea how my conversation went with the UCs. For the record, I did ask them this and they told me no. I added the detail in with regards to my situ to explain why I need to do this and because people gave answers initially that wouldn't work - totally relevant.

Anyway, I'm done with this - won't be responding to any further posts making incorrect assumptions.

Thanks to the 2 preceding posters - will check out the UCs that you mention.

Which was our entire point - you are asking the wrong questions and approaching it from the wrong direction.

Do you need to worry about the £40k limit or could you save more? As if you haven't used your previous allowances (and had a pension) you have more than £40k to play with.

And the issue is not lump sums (which creates complexity) its can I redirect a percentage of total invoice income (every thing above £x an hour where £x is greater than minimum wage and Employer NI costs) directly to the pension...

However it does seem that you are too arrogant to recognise the fact you are asking the wrong question and hence have been making things too complex for everyone because you haven't actually grasped the easiest way of achieving what you want (send x% of the invoice to your pension a month rather than £x).

Equally I where have you got the £3333 limit from? Given how tax (especially NI) works its better to max you pension contributions early in the year and then switch to no pension contributions later if you've spent all your allowances. Especially as there is a chance your next contract could be outside IR35.

[rascal]

I've heard that UCs DO allow the changing of pension contributions, but have no experience of that, and I suspect they'd want to limit that to a reasonable number of times each yet.

That hasn't been my experience. I was told that the salary sacrifice arrangement could only be changed once a year (as it forms part of your employment contract) unless a significant lifestyle event occurs.

I'd be wary of any UC that flaunts the HMRC rules on this.

https://www.gov.uk/guidance/salary-s...ffects-on-paye

[eek]

That hasn't been my experience. I was told that the salary sacrifice arrangement could only be changed once a year (as it forms part of your employment contract) unless a significant lifestyle event occurs.

I'd be wary of any UC that flaunts the HMRC rules on this.

https://www.gov.uk/guidance/salary-s...ffects-on-paye

It's worth adding that a change in contract would be a significant lifestyle event - above and beyond the lifestyle events that impact employees.

[rootsnall]

JSA do salary sacrifice, you set a percentage you wish to go into your SIPP up to a maximum of 83%. It is up to you to keep tabs on if you have used your £40K allowance, not sure how/if HMRC will pick up on if you go over the limit ( including backdated years ). If you are on 83% then the change in marginal tax/NI rate when you cross over the line is jaw dropping. JSA have been good, mistake free.

[gizzmo]

Equally I where have you got the £3333 limit from? Given how tax (especially NI) works its better to max you pension contributions early in the year and then switch to no pension contributions later if you've spent all your allowances. Especially as there is a chance your next contract could be outside IR35.

I suspect its £3333 x 12 = £39,996 - ie use up the £40k allowance