Umbrellas which offer 'Salary-Sacrifice' pensions Umbrellas which offer 'Salary-Sacrifice' pensions
Page 1 of 2 12 LastLast
Posts 1 to 10 of 11
  1. #1

    Nervous Newbie


    Join Date
    Oct 2019
    Posts
    1

    Default Umbrellas which offer 'Salary-Sacrifice' pensions

    Hello All,

    I am trying to find out if there are any umbrella companies offer 'Salary Sacrifice' pensions

    So far only found one which is Contractor Umbrella

    Parasol - Not able to get a clear answer from them.

  2. #2

    Contractor Among Contractors

    GhostofTarbera's Avatar
    Join Date
    May 2018
    Posts
    1,203

    Default

    Carry them back also


    https://www.contractoruk.com/forums/...-pensions.html


    Sent from my iPhone using Contractor UK Forum

  3. #3

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    41,045

    Default

    Speak to Lucy at the new Clarity Umbrella Home - Clarity Umbrella Ltd - UK PAYE Umbrella Company

    I wouldn't be spending too much time hunting as most won't. As far as I know it's only these two.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  4. #4

    Should post faster

    DolanContractorGroup's Avatar
    Join Date
    Mar 2018
    Location
    Tring
    Posts
    111

    Default

    Quote Originally Posted by SPM View Post
    Hello All,

    I am trying to find out if there are any umbrella companies offer 'Salary Sacrifice' pensions

    So far only found one which is Contractor Umbrella

    Parasol - Not able to get a clear answer from them.
    Thanks SPM

    Yes, we, under the Contractor Umbrella brand, have been doing this for many years and our payroll team has extensive experience of it.

    If there are any questions you have regarding this, please don't hesitate to get in touch.


    Kind regards

    Zeeshan

  5. #5

    Still gathering requirements...


    Join Date
    Feb 2015
    Posts
    71

    Default

    Just out of interest*, how does an Umbrella company operate a salary sacrifice pension scheme?

    If it's an employer contribution out of the invoice value I can understand that but most (all?) Umbrella contracts guarantee minimum wage only, then a discretionary bonus/commission on top made up of what's left after the Umbrella's deductions (expenses, NICs and employer pension contributions).

    I just don't see where the "salary" is to sacrifice from or is it that in name only for ease of description?

    *to massive nerds

  6. #6

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    41,045

    Default

    Quote Originally Posted by VelcroPower View Post
    Just out of interest*, how does an Umbrella company operate a salary sacrifice pension scheme?

    If it's an employer contribution out of the invoice value I can understand that but most (all?) Umbrella contracts guarantee minimum wage only, then a discretionary bonus/commission on top made up of what's left after the Umbrella's deductions (expenses, NICs and employer pension contributions).

    I just don't see where the "salary" is to sacrifice from or is it that in name only for ease of description?

    *to massive nerds
    I think you are misunderstanding the whole model there? There is no bonus or commission. It's PAYE out of what gross they get from the client. The payslip shows just what a permie one would.

    I would have thought bonus/commission/loan payments are in the realms of schemes, not proper PAYE no?
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  7. #7

    Nice But Dim

    DaveB's Avatar
    Join Date
    Oct 2005
    Posts
    20,142

    Default

    Quote Originally Posted by VelcroPower View Post
    Just out of interest*, how does an Umbrella company operate a salary sacrifice pension scheme?

    If it's an employer contribution out of the invoice value I can understand that but most (all?) Umbrella contracts guarantee minimum wage only, then a discretionary bonus/commission on top made up of what's left after the Umbrella's deductions (expenses, NICs and employer pension contributions).

    I just don't see where the "salary" is to sacrifice from or is it that in name only for ease of description?

    *to massive nerds
    You are an employee of the Umbrella company and get paid via standard PAYE. If they do anything else they are not a proper Umbrella co. and are operating some sort of avoidance scheme that may or may not leave you with some serious liabilities down the line if HMRC come calling.
    "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

  8. #8

    Should post faster

    DolanContractorGroup's Avatar
    Join Date
    Mar 2018
    Location
    Tring
    Posts
    111

    Default

    Quote Originally Posted by VelcroPower View Post
    Just out of interest*, how does an Umbrella company operate a salary sacrifice pension scheme?

    If it's an employer contribution out of the invoice value I can understand that but most (all?) Umbrella contracts guarantee minimum wage only, then a discretionary bonus/commission on top made up of what's left after the Umbrella's deductions (expenses, NICs and employer pension contributions).

    I just don't see where the "salary" is to sacrifice from or is it that in name only for ease of description?

    *to massive nerds
    Hi VelcroPower,

    So, when the umbrella employee gets paid, the additional salary sacrifice will be done from the "bonus" element as this can be reduced for the purposes of tax treatment/efficiency, whereas the minimum wage element can't be.

    I hope this answers your question.


    Quote Originally Posted by northernladuk View Post
    I think you are misunderstanding the whole model there? There is no bonus or commission. It's PAYE out of what gross they get from the client. The payslip shows just what a permie one would.

    I would have thought bonus/commission/loan payments are in the realms of schemes, not proper PAYE no?
    Under the umbrella model, workers are paid their salary in 2 parts; the NMW and the "bonus" or "profit share". It all looks the same on the payslip as a normal PAYE employee, but in the background the calculations have to take into account both of these parts because the minimum that has to be paid in all instances is NMW. The bonus element can vary dependent on pension or business expenses.

    Hope this helps.

    Kind regards


    Zeeshan

  9. #9

    Still gathering requirements...


    Join Date
    Feb 2015
    Posts
    71

    Default

    Quote Originally Posted by northernladuk View Post
    I think you are misunderstanding the whole model there? There is no bonus or commission. It's PAYE out of what gross they get from the client. The payslip shows just what a permie one would.

    I would have thought bonus/commission/loan payments are in the realms of schemes, not proper PAYE no?
    It's been a while since I've seen one, but most umbrella contracts are for NMW to minimise the Umbrella's liability in the event of non payment by the client/agency. On top of that the Umbrella then pays a discretionary amount made up of the remainder of the invoice value after the umbrella costs have been deducted.

    i.e. your invoice value for a particular month is is £4,000.

    The umbrella deducts Employer NIC, Their Margin, Any allowable expenses, AE employer contributions from their invoice, say £1k. The remaining £3k is the gross pay upon which tax and nics are calculated. That £3k payment is usually NMW+the rest as bonus/commission, which is all subject to PAYE.

    In all circumstances I have seen previously the pension amount is deducted from the invoice amount making it an employer contribution rather than as a salary sacrifice. The advantage of that to the umbrella employee are the savings on Employer NIC on top of EE's Nic and Tax.

  10. #10

    Still gathering requirements...


    Join Date
    Feb 2015
    Posts
    71

    Default

    Quote Originally Posted by DolanContractorGroup View Post
    Hi VelcroPower,

    So, when the umbrella employee gets paid, the additional salary sacrifice will be done from the "bonus" element as this can be reduced for the purposes of tax treatment/efficiency, whereas the minimum wage element can't be.

    I hope this answers your question.
    Thanks - so further question follows - do the employee's get their Employer NIC relief as well on that sacrifice? I know a certain umbrella that used to retain that...

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •