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Umbrellas which offer 'Salary-Sacrifice' pensions

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    #61
    Originally posted by gizzmo View Post

    I suspect its £3333 x 12 = £39,996 - ie use up the £40k allowance
    I know where he got the £3333 from the point was that there are a lot of reasons why it's not relevant. For instance:-

    1) front loading pension payments so that you can take a outside IR35 contract if one came along,
    2) having historic unused allowances which could be used.
    merely at clientco for the entertainment

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      #62
      Originally posted by rascal View Post
      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.
      That depends very much on how the contract is worded.

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        #63
        Originally posted by eek View Post

        But you need to be paid living wage so you will need to take £10 or so an hour in wages for the hours you work (so £80 a day say).

        Then ask for everything else beyond that amount to be put into your pension pot..
        What about the scenario where you're on a short term contract (3 months) you already have enough money in your Ltd to live off - would it not be reasonable / possible to put 100% of your earnings from the contract into your pension?

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          #64
          Originally posted by Great Parks View Post

          What about the scenario where you're on a short term contract (3 months) you already have enough money in your Ltd to live off - would it not be reasonable / possible to put 100% of your earnings from the contract into your pension?
          No - your employer (the umbrella company) does need to pay you the minimum wage - and you cannot opt or avoid that.
          merely at clientco for the entertainment

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            #65
            Originally posted by eek View Post

            No - your employer (the umbrella company) does need to pay you the minimum wage - and you cannot opt or avoid that.
            Ok so I guess I need to pay myself the £8.72 ph pro rata then.

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              #66
              Originally posted by Great Parks View Post

              Ok so I guess I need to pay myself the £8.72 ph pro rata then.
              You can use the calculator on this website - https://www.giantpay.co.uk/umbrella

              If you put 100% income as salary sacrifice, it will automatically reduce it so that you can have a salary above the national wage limit.

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                #67
                Originally posted by jbeer View Post

                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
                Probably a late reply, but I spoke to Giant umbrella and they said they can vary it on 3-4 weeks notice.

                https://www.giantpay.co.uk/umbrella

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                  #68
                  Originally posted by Great Parks View Post

                  Ok so I guess I need to pay myself the £8.72 ph pro rata then.
                  They have to ensure that you receive the NLW at £8.72 based on the hours worked during the period.

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                    #69
                    Originally posted by eek View Post
                    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 might be a bit thick, but I'm not quite following why maxing out the contributions early in the tax year would make a big difference, especially if we're still talking salary sacrifice where NI wouldn't apply AFAIU. And where - unless I'm misunderstanding it - the salary sacrifice would be pretty much equivalent to what employer's pension contributions from your Ltd would be if you were working outside.

                    Asking for a friend...

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                      #70
                      Originally posted by CaffeineToCodeConverter View Post

                      I might be a bit thick, but I'm not quite following why maxing out the contributions early in the tax year would make a big difference, especially if we're still talking salary sacrifice where NI wouldn't apply AFAIU. And where - unless I'm misunderstanding it - the salary sacrifice would be pretty much equivalent to what employer's pension contributions from your Ltd would be if you were working outside.

                      Asking for a friend...
                      It's really very simple.

                      This contract is inside IR35 - your next contract may not be.

                      And an inside IR35 contract is taxed far more than an outside IR35 contract so to minimise the tax you pay it makes sense to fill your pension up via inside IR35 contracts.

                      The reverse is also true. If you are outside IR35 I wouldn't be putting a lot into a pension as you don't know what your next contract will look like.
                      Last edited by eek; 29 March 2021, 06:30.
                      merely at clientco for the entertainment

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