• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Umbrellas which offer 'Salary-Sacrifice' pensions

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    #71
    Hello All,

    I've been talking to a few umbrella companies over the last 2 months, as different employers wanted different umbrellas to be used.

    Companies which allow salary sacrifice into an existing pension
    - NASA (Great service provider)
    - Danbro
    - Paystream
    - Focussed
    - Sapphire (Good but expensive).

    Brookson can NOT pay salary sacrifice into a pension, but they tell a lot of lies and pretend that they can, until it is too late for you to pull out. Be aware of this company.

    Good luck all!

    Comment


      #72
      Originally posted by Weary Contractor View Post
      Hello All,

      Brookson can NOT pay salary sacrifice into a pension, but they tell a lot of lies and pretend that they can, until it is too late for you to pull out. Be aware of this company.
      Would it be possible for you to describe the lies and the facts of the matter in a bit more detail?

      Genuinely asking here. Your advice might have come at just the right time for me, as I was just about to sign up with Brookson and have been quite interested in their salary sacrifice option... but I have probably not been asking them enough probing questions. :/

      I have noted their web overview on this is very brief... and lumping it together with a Cycle-to-work scheme feels like a bit of a joke, even without lockdown...

      https://www.brooksonfaq.co.uk/knowle...lla-employees/

      Comment


        #73
        ICSUK and Foretwogroup offer salary sacrifice to a pension provider of your choice.

        I have not used them though and I am seeking feedback. (see my other post)

        Comment


          #74
          Originally posted by CaffeineToCodeConverter View Post

          Would it be possible for you to describe the lies and the facts of the matter in a bit more detail?

          Genuinely asking here. Your advice might have come at just the right time for me, as I was just about to sign up with Brookson and have been quite interested in their salary sacrifice option... but I have probably not been asking them enough probing questions. :/

          I have noted their web overview on this is very brief... and lumping it together with a Cycle-to-work scheme feels like a bit of a joke, even without lockdown...

          https://www.brooksonfaq.co.uk/knowle...lla-employees/
          Brookson can NOT pay a third party Pension provider.
          They only pay their own pension provider (that they doubtless get fees from)
          But for some reason, they can't bring themselves to say that on the phone or on their website - they just 'hint' that they can, and skirt round the issue.

          Obviously we know what the reason is that they are not honest on this issue - They don't want to lose the sales by saying they can't pay a third party pension. So they hope that you will be deep into the signing and possibly have money paid to Brookson before you find this limitation.

          This has been going on for months, and despite multiple complaints from people to Brookson and the FCSA there is no change.
          You might wonder why the FCSA does not crack down on this practice - then you remember that a) FCSA are tiny with what appears to be circa 3-4 staff, b) You can't call any working phone numbers for FCSA they never answer, c) Umbrellas pay FCSA, so FCSA is not on your side.

          So in an environment where there is in essence no regulator for umbrella company issues (great isn't it?) - Avoid brookson...

          Comment


            #75
            Originally posted by Weary Contractor View Post

            Brookson can NOT pay a third party Pension provider.
            They only pay their own pension provider (that they doubtless get fees from)
            But for some reason, they can't bring themselves to say that on the phone or on their website - they just 'hint' that they can, and skirt round the issue.

            Obviously we know what the reason is that they are not honest on this issue - They don't want to lose the sales by saying they can't pay a third party pension. So they hope that you will be deep into the signing and possibly have money paid to Brookson before you find this limitation.

            This has been going on for months, and despite multiple complaints from people to Brookson and the FCSA there is no change.
            You might wonder why the FCSA does not crack down on this practice - then you remember that a) FCSA are tiny with what appears to be circa 3-4 staff, b) You can't call any working phone numbers for FCSA they never answer, c) Umbrellas pay FCSA, so FCSA is not on your side.

            So in an environment where there is in essence no regulator for umbrella company issues (great isn't it?) - Avoid brookson...
            The FCSA don't have staff - unless things have changed it has a single employee / executive and complaints will be beneath them.
            merely at clientco for the entertainment

            Comment


              #76
              The Salary sacrifice into personal pension / SIPP - would this be 100% employer contribution or split into 5% employer contribution and the rest as employee contribution?

              Comment


                #77
                Originally posted by truthseeker View Post
                The Salary sacrifice into personal pension / SIPP - would this be 100% employer contribution or split into 5% employer contribution and the rest as employee contribution?
                As a contractor, all contributions come out of your day rate. The umbrella is only your employer for payroll purposes.

                From a technical point though, the pension amount is deducted from the invoice amount making it an employer contribution.
                "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
                - Voltaire/Benjamin Franklin/Anne Frank...

                Comment


                  #78
                  Originally posted by cojak View Post

                  As a contractor, all contributions come out of the assignment's day rate. The umbrella is really only your employer for payroll purposes.

                  From a technical point though, the pension amount is deducted from the invoice amount making it an employer contribution.
                  I've made 2 minor changes there - day rate could imply PAYE rather than assignment rate (assignment rate being HMRCs new preferred term for the rate the agency pays the umbrella) and an umbrella should in theory be doing some employment type activities like Statutory Sick pay and other items.

                  And we have seen cases where an agency pocketed the Employer NI savings - the biggest reasons to use an umbrella are:-

                  1) Maximise pension contributions
                  2) continuity of employment for financial reasons.
                  Last edited by eek; 11 May 2021, 10:13. Reason: get the transaction order agency > Umbrella correct.
                  merely at clientco for the entertainment

                  Comment


                    #79
                    Paystream have been very good managing my SIPP Salary Sacrifice into interactive investor.
                    I've been with them 14 months now and last tax year they let me over contribute above the normal max to use up previous years pension allowance.
                    They then let me amend the contribution down for this new tax year to keep within the limits.

                    PAYE is weekly and SIPP contribution monthly on 19th of following month.
                    They email me on 13th with the amount to pass on to ii - I complete and upload the ii form for single contribution.
                    It usually takes about 3 days after 19th to clear into my SIPP, but that seems to be ii lag.

                    The process has been very consistent and so I'd thoroughly recommend Paystream.

                    Comment


                      #80
                      Originally posted by Tynos View Post
                      Paystream have been very good managing my SIPP Salary Sacrifice into interactive investor.
                      I've been with them 14 months now and last tax year they let me over contribute above the normal max to use up previous years pension allowance.
                      They then let me amend the contribution down for this new tax year to keep within the limits.

                      PAYE is weekly and SIPP contribution monthly on 19th of following month.
                      They email me on 13th with the amount to pass on to ii - I complete and upload the ii form for single contribution.
                      It usually takes about 3 days after 19th to clear into my SIPP, but that seems to be ii lag.

                      The process has been very consistent and so I'd thoroughly recommend Paystream.
                      I feel a bit thick when I read this - as when I spoke to Paystream I got the impression it was easier for me to just get paid and make my own contribution directly (but there I would just be claiming back my tax and no NI I guess), in fact I almost got advised to do this (as I wanted it to go to ii) by the person I spoke to?


                      Am I right in thinking they take off the invoice amount first and then apply all the subsequent employer NI and then other taxes + NI?

                      In which case its a no brainer - I should be asking Paystream to do this into my SIPP too... and just lost a year of a max contribution I guess ...


                      Comment

                      Working...
                      X