Any UC that can do Salary Sacrifice properly!

[Bankrobber]

Due to new IR35 regs I've joined an Umbrella Company.

I currently pay a fixed sum into a personal pension, and was told that I'd be able to continue this under the UC by using salary sacrifice.

However, they have some convoluted method of calculating this. I currently pay £1000/month to the pension provider.
The UC say they can't simply pay this fixed amount. Instead they calculate it at £50/day and nothing for days I don't work. E.g. if I have a few days holiday in a month, nothing would go to my pension for those days!

So the amount going to my provider would vary depending on number of days worked in a month.

My pension provider cannot process non-fixed amounts.

Does anyone know of a UC who can simply work on a fixed amount each month?

[malvolio]

Clarity and ContractorUmbrella have sensible schemes, AIUI. There may be others

Or move your SIPP to somewhere more accommodating...

[andydd68]

Due to new IR35 regs I've joined an Umbrella Company.

I currently pay a fixed sum into a personal pension, and was told that I'd be able to continue this under the UC by using salary sacrifice.

However, they have some convoluted method of calculating this. I currently pay £1000/month to the pension provider.
The UC say they can't simply pay this fixed amount. Instead they calculate it at £50/day and nothing for days I don't work. E.g. if I have a few days holiday in a month, nothing would go to my pension for those days!

So the amount going to my provider would vary depending on number of days worked in a month.

My pension provider cannot process non-fixed amounts.

Does anyone know of a UC who can simply work on a fixed amount each month?

I have managed to remain with my Ltd but was all prepared to go with Parasol, they seemed to setup a monthly fixed sum salary sacrifice with no real issues, im surprised at your post as it appears that most UC would rather just setup a standard monthly amount..as clearly its less admin, your brolly seems to want to make it more complicated for itself.

[Acme Thunderer]

I have managed to remain with my Ltd but was all prepared to go with Parasol, they seemed to setup a monthly fixed sum salary sacrifice with no real issues, im surprised at your post as it appears that most UC would rather just setup a standard monthly amount..as clearly its less admin, your brolly seems to want to make it more complicated for itself.

There is the potential trip wire of national minimum wage. If you pay a fixed amount monthly but don't earn enough because of bench, sick or holiday then you could potentially be getting paid less than the NMW and that is not allowed. UC takes the easy option and takes takes a portion during each payroll run and pays it to your SIPP once a month. Guaranteed you never go below NMW

[BABABlackSheep]

Parasol don’t let you put into a SIPP. Only there appointed pension scheme.

I went with Paystream for exactly this reason.

[GhostofTarbera]

Due to new IR35 regs I've joined an Umbrella Company.

I currently pay a fixed sum into a personal pension, and was told that I'd be able to continue this under the UC by using salary sacrifice.

However, they have some convoluted method of calculating this. I currently pay £1000/month to the pension provider.
The UC say they can't simply pay this fixed amount. Instead they calculate it at £50/day and nothing for days I don't work. E.g. if I have a few days holiday in a month, nothing would go to my pension for those days!

So the amount going to my provider would vary depending on number of days worked in a month.

My pension provider cannot process non-fixed amounts.

Does anyone know of a UC who can simply work on a fixed amount each month?

Anther madman paying into a pension in bear market

Just burn your money


Sent from my iPhone using Contractor UK Forum

[Paul99]

Parasol don’t let you put into a SIPP. Only there appointed pension scheme.

I went with Paystream for exactly this reason.

What payment terms for any pension deducted via salary sacrifice do you have with Paystream? Just joined as umbrella company, had my first month, and have to admit I'm very confused. I chose to get paid monthly, but it seems that the pension deduction is not paid to my pension provider until 19th month after i get paid, so in effect an extra delay of 4-5 weeks after I get paid for the month before. They can't explain why, but they have my money for that time, when it should be paid at same time into my plan. Strangely this was never explained when I questioned this before joining.

[Paralytic]

What payment terms for any pension deducted via salary sacrifice do you have with Paystream? Just joined as umbrella company, had my first month, and have to admit I'm very confused. I chose to get paid monthly, but it seems that the pension deduction is not paid to my pension provider until 19th month after i get paid, so in effect an extra delay of 4-5 weeks after I get paid for the month before. They can't explain why, but they have my money for that time, when it should be paid at same time into my plan. Strangely this was never explained when I questioned this before joining.

This will likely be to reduce administration on their side - so they send all payments over to that pension provider on that day for all contractors. I suppose they might earn a tiny bit of interest on those funds too.

As for them not telling you this; did you ask when your contributions would be sent over to your pension provider?

[gizzmo]

Parasol don’t let you put into a SIPP. Only there appointed pension scheme.

I went with Paystream for exactly this reason.

I am in discussions with Parasol as will be starting a contract in Dec and client wants me to sign up with Parasol. I had a call with Parasol who mentioned that they can pay into my personal pension or SIPP and would not be limited to their scheme but now i have read this i am worried. Admittedly they have not sent me any information on the pension salary sacrifice in writing - everything was discussed on the telephone only. I may have to double check before signing up.

[eek]

I am in discussions with Parasol as will be starting a contract in Dec and client wants me to sign up with Parasol. I had a call with Parasol who mentioned that they can pay into my personal pension or SIPP and would not be limited to their scheme but now i have read this i am worried. Admittedly they have not sent me any information on the pension salary sacrifice in writing - everything was discussed on the telephone only. I may have to double check before signing up.

That was March - things may well have changed.