Umbrella or not to Umbrella?

[eek]

Thanks - yes, that's the case here. I do (at least for now) have other work coming into my Ltd Company so I already have the overhead of keeping it going anyway.

I'm reluctant to add an Umbrella too, unless the savings from salary sacrifice are meaningful enough to cover the Umbrella margin and the inconvenience of having yet another party between me and my income.

The savings from an umbrella kick in once you are putting more than about £700 a month into your pension. After that you are putting an 16.3% compared to your current deemed payments approach.

[supersteamer]

The savings from an umbrella kick in once you are putting more than about £700 a month into your pension. After that you are putting an 16.3% compared to your current deemed payments approach.

Thanks eek - that's very useful. I'm hoping to max out on pensions so will be much more than £700. It would be great if you get a chance to show your working, please?

[eek]

Thanks eek - that's very useful. I'm hoping to max out on pensions so will be much more than £700. It would be great if you get a chance to show your working, please?

Employer NI 13.8%
Apprenticeship Levy 0.5%
Employee NI (higher income rate) 2%

Umbrella fee is £100. and 100/0.163=£613

So the maths is wrong but not in the wrong direction and the umbrella fee is covered by the first £613 put in the pension pot. After that everything extra put into the pension pot will be 16.3% more than it would otherwise be.

[supersteamer]

Brilliant - many thanks