Umbrella Contract Pension Salary Sacrifice

[Semtex]

Hello

Can someone please advise how contributing to a SIPP when using an umbrella company? More specifically what are the benefits and how do they work in practice? Is there a calculator available anywhere?

Cheers

[SueEllen]

You would have to do an individual contribution out of your post tax salary.

You could try contacting your Umbrella company and ask them about whether they could pay some of your income pre-tax into your pension. They are within their rights to refuse in case your chosen provider isn't legit.

[northernladuk]

Are we talking about in the interim if you go brolly for a PS gig or longer term?

Very short thread on it here but don't think it's an answer
http://forums.contractoruk.com/showthread.php?t=54017

[northernladuk]

This article help? ..........

[cojak]

You would have to do an individual contribution out of your post tax salary.

You could try contacting your Umbrella company and ask them about whether they could pay some of your income pre-tax into your pension. They are within their rights to refuse in case your chosen provider isn't legit.

But you can reclaim that tax in your SA if you put into a proper pension, can't you?

[Semtex]

[QUOTE=northernladuk;2371093]This article help? /QUOTE]

This does help thank you.

[SueEllen]

But you can reclaim that tax in your SA if you put into a proper pension, can't you?

As stated in the thread NLUK linked to.

The reason I mentioned legit pensions is that there were scams going on where people were conned into transfering their pension to companies that were running schemes that weren't legit so ran off with their money.

There was no regulation to check that pension schemes were legit until last year, and because there are so many different pension schemes it's impossible for anyone to know without doing a bit of research whether one is legit.

[DaveB]

But you can reclaim that tax in your SA if you put into a proper pension, can't you?

You can but you still lose out on the NI payments made before you get the money.

If you pay via Salary Sacrifice the contributions are deducted *before* NI is calculated and reduce your NI bill.