Pensions and umbrellas

[psychocandy]

Been umbrella in public sector for last 5 years.....
New gig coming up and new umbrella needed.

OK there my understanding. The umbrella get the gross amount from the agency and then reverse calculate the 13.5% employer NI which comes off. Then its a "normal" employee type gross salary with normal NI and tax. Right?

I know previously, and I think I'm right, that the pension contributions came out of the gross total. i.e. So BEFORE the employer NI. Which saves paying 13.5% on it?
BUT I remember the last pension person at the brolly telling me it didnt make much difference if it came out as personal contributions.

Anyone understand it? Surely its better to take it out BEFORE you start getting ANY sort of deduction?

[eek]

Been umbrella in public sector for last 5 years.....
New gig coming up and new umbrella needed.

OK there my understanding. The umbrella get the gross amount from the agency and then reverse calculate the 13.5% employer NI which comes off. Then its a "normal" employee type gross salary with normal NI and tax. Right?

I know previously, and I think I'm right, that the pension contributions came out of the gross total. i.e. So BEFORE the employer NI. Which saves paying 13.5% on it?
BUT I remember the last pension person at the brolly telling me it didnt make much difference if it came out as personal contributions.

Anyone understand it? Surely its better to take it out BEFORE you start getting ANY sort of deduction?

Yes it f***ing well does.

As we've now said multiple times try and use Clarity for you are completely clueless and getting conned (if the above is an example of your knowledge).

The only advantage an umbrella offers over agency payroll is the ability (that a decent umbrella will offer) to put money via salary sacrifice AND before any deductions / calculations are made directly into your preferred pension scheme.

Salary Sacrifice - money is paid into your pension before any deductions are made
Personal contributions - you can claim the income tax back but will have lost 25% in NI contributions that you cannot reclaim but can avoid paying in the first place if you do things properly.

[SimonMac]

Do you not have your old payslips, can you not just check yourself with the information you have already in your hand?

[css_jay99]

I am about to start a contract inside IR35 so umbrella is completely new to me. Having called a few umbrellas, I find that most will only pay into their own pension scheme. How are people dealing with this if you already have your own pension scheme you currently pay into?

[eek]

I am about to start a contract inside IR35 so umbrella is completely new to me. Having called a few umbrellas, I find that most will only pay into their own pension scheme. How are people dealing with this if you already have your own pension scheme you currently pay into?

You either keep going until you find one that will pay into your scheme directly or you find an umbrella using a pension scheme with low enough costs that transferring the money into your scheme isn't that expensive.

There is a reason why we continually suggest Clarity...

[northernladuk]

I am about to start a contract inside IR35 so umbrella is completely new to me. Having called a few umbrellas, I find that most will only pay into their own pension scheme. How are people dealing with this if you already have your own pension scheme you currently pay into?

That's odd as I thought from the feedback the majority allow payments to your own SIPP.

[northernladuk]

Been umbrella in public sector for last 5 years.....

So you'll actually know more about this than most on the forums then won't you?

OK there my understanding. The umbrella get the gross amount from the agency and then reverse calculate the 13.5% employer NI which comes off. Then its a "normal" employee type gross salary with normal NI and tax. Right?

I know previously, and I think I'm right, that the pension contributions came out of the gross total. i.e. So BEFORE the employer NI. Which saves paying 13.5% on it?
BUT I remember the last pension person at the brolly telling me it didnt make much difference if it came out as personal contributions.

Anyone understand it? Surely its better to take it out BEFORE you start getting ANY sort of deduction?

Clearly not

How come you don't know this when you are happy to tell everyone you've been with a brolly 5 years already? Tell us how long you've been with them and the prove you don't have a bleedin clue. Way to go.

[css_jay99]

That's odd as I thought from the feedback the majority allow payments to your own SIPP.

Two I called I think did not. A search on the forum implied people are not fully satisfied with how the UC was handling their SIPPs.


I thought I'll be happy getting back to work after taking a year off but the realisation that I'll be handing a huge chunk over for tax is pissing me off.

[northernladuk]

Two I called I think did not. A search on the forum implied people are not fully satisfied with how the UC was handling their SIPPs.


I thought I'll be happy getting back to work after taking a year off but the realisation that I'll be handing a huge chunk over for tax is pissing me off.

You are thinking about it all wrong then. Just focus on the income and treat it like a low paid gig that's not going to last long.

Have you rung clarity yet?

[css_jay99]

You are thinking about it all wrong then. Just focus on the income and treat it like a low paid gig that's not going to last long.

Have you rung clarity yet?

I did call Clarity but unless I am mistaken, I was told only pension option was NEST.