Umberlla Pension question

[dx4100]

Hi all

Been speaking to a umbrella company tonight, Parasol, and they said if I wanted to make pension contributions before tax then i would have to sign up for their pension scheme and leave my exsiting one.

Is this true ?? Sounds a tad naughty to me.

[Gonzo]

Is this true ?? Sounds a tad naughty to me.

Not necessarily. The pension rules on what you can contribute to are complicated, and have changed since the last time that I looked at them in detail, but I am guessing that a pension scheme that you contribute to through your umbrella would count as an occupational pension and you are(were) only aloud to contribute to one of those at a time.

[ASB]

Hi all

Been speaking to a umbrella company tonight, Parasol, and they said if I wanted to make pension contributions before tax then i would have to sign up for their pension scheme and leave my exsiting one.

Is this true ?? Sounds a tad naughty to me.

Leave - no
Stop contributing to - quite possibly. Depends on what your current arrangements are.

However, you might want to do a search. Whether you are better making gross contributions from turnover or net contributions from personal income depends very much upon your personal circumstances. However, if your income is predominantly paye it is likely that contributions from turnover are better.