Umbrella workplace pension scheme arrangement type

[foxyy]

Do most umbrella's, such as Paystream, operate 'relief at source' or 'net pay' arrangements for workplace pension deductions to be paid into your chosen SIPP (with providers like Hargreaves Lansdown)?

Assuming you opt out of NEST pension scheme.

Can you claim extra tax relief from your pension provider and/or through your tax return for these umbrella pension contributions? Or are they classed as full relief already applied at the point they are deducted from your pay?

Thanks

[northernladuk]

It will depend on the individual scheme so I don't think you'll get an answer to 'Do most umbrellas' If we say yes most do this one it's still not much use to you as the agency you go through will have a list of brollies you can use. in some cases you can go with one not on the list but not always. Also not all allow payments in to your own provider. This has been changing over the years. When the IR35 thing hit I don't think any did but they've realised it's one of the biggest benefits and have all re-visited their pension offerings. Not been close enough but last time this was discussed on here there still weren't many paying in to your own.

So unless times have changed and someone much more knowledgable comes along and rubbishes everything I've just said I'd say to get any kind of answer that is useful to you you will need to go look at each brolly and look in to their scheme.

To save time go ask Clarity and then push them for every gig you go for. After that go look at a couple of the big names that are likely to be on the list. No need to investigate the whole industry.

[Protagoras]

So unless times have changed and someone much more knowledgable comes along and rubbishes everything I've just said I'd say to get any kind of answer that is useful to you you will need to go look at each brolly and look in to their scheme.

+1
There's no generic answer. OP needs to contact the umbrella companies that could be used for the assignment and check whether any of these can make payments to OP's SIPP (and what the charges are for this).

The umbrella company should be making these pension contributions from gross - there's then no NI paid on the contributions. On that (gross) basis there's no tax relief for the worker to claim.

One thing to watch is that some umbrella companies fix the monthly SIPP payment, so that this may only be changed annually. Others will allow a percentage of gross to be sacrificed to pension each month, although this will be capped (since umbrella needs to cover PAYE costs etc.).

Also, although an umbrella company may invoice and pay weekly, pension payments may be held to be made monthly.

Lastly, it's not unknown for pension payments by umbrella companies to be capped at the annual allowance (£60k this year) and so carry-forward of unused allowance may be an issue for some.

[Acme Thunderer]

In the case of Paystream pension is salary sacrifice and deducted before Employer NI is calculated. As has been said before although they collect the pension weekly it is paid into your SIPP monthly.

[lucyclarityumbrella]

Back what they everyone is saying - it is down to the umbrella as to how they operate ie S/S or auto enrolment, but also down to the SIPP providers as to whether they can accept payments via ad-hoc BACs payments, as I am guessing most umbrella's are unlikely to set up DD's which is a requirement for some pension providers.

[gixxer2021]

If you’re with HL then they allowed ad-hoc bacs payments into your sipp last time I was using an umbrella no problem (was nearly 2 years ago now though). The umbrella I used made salary sacrifice payments so no employers ni etc paid on that (effectively employers pension payments), which were monthly (several weeks behind). I did have to let HL know that these were employers contribution’s. I also paid in over the 40k limit using some of my unused allowance from the previous 3 years, which was ok too, just required a confirmation to HL that this was the case.