SIPP with umbrella SIPP with umbrella
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  1. #1

    Nervous Newbie


    Join Date
    Dec 2011
    Posts
    6

    Default SIPP with umbrella

    So, my clients' response to IR35 is to stop using PSCs so I am forced to go with an umbrella.

    One of my main concerns is my pension - I have a SIPP and would like to be able to continue paying into it, using salary sacrifice which seems the only sensible option.

    Are there any FCSA accredited umbrellas which will pay straight into my SIPP?

    I have a long list of Umbrellas which my client's outsourced HR will accept, but I've been unable to find out much short of phoning them all about how their pesnion arrangements work.

  2. #2

    Fingers like lightning


    Join Date
    Feb 2013
    Location
    Ipswich, Suffolk
    Posts
    634

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    Quote Originally Posted by Wonko View Post
    So, my clients' response to IR35 is to stop using PSCs so I am forced to go with an umbrella.

    One of my main concerns is my pension - I have a SIPP and would like to be able to continue paying into it, using salary sacrifice which seems the only sensible option.

    Are there any FCSA accredited umbrellas which will pay straight into my SIPP?

    I have a long list of Umbrellas which my client's outsourced HR will accept, but I've been unable to find out much short of phoning them all about how their pesnion arrangements work.
    Most won't as it means having to manage a different pension for every single contractor which is a logistical and administrative nightmare, best option is to find one that will allow you to move the money once your assignment has finished at no cost back into your SIPP. And please, please, please do phone them, at the end of the day they are going to be handling your money make sure you feel comfortable with them, its way too easy to just be an online business that offers no actual customer service

  3. #3

    Default

    Quote Originally Posted by Wonko View Post
    So, my clients' response to IR35 is to stop using PSCs so I am forced to go with an umbrella.

    One of my main concerns is my pension - I have a SIPP and would like to be able to continue paying into it, using salary sacrifice which seems the only sensible option.

    Are there any FCSA accredited umbrellas which will pay straight into my SIPP?

    I have a long list of Umbrellas which my client's outsourced HR will accept, but I've been unable to find out much short of phoning them all about how their pesnion arrangements work.
    As Lucy said, many umbrellas do not offer the option of paying into SIPPS, but I can tell you they do exist.

  4. #4

    Still gathering requirements...


    Join Date
    Jul 2014
    Posts
    22

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    Quote Originally Posted by lucyclarityumbrella View Post
    Most won't as it means having to manage a different pension for every single contractor which is a logistical and administrative nightmare, best option is to find one that will allow you to move the money once your assignment has finished at no cost back into your SIPP. And please, please, please do phone them, at the end of the day they are going to be handling your money make sure you feel comfortable with them, its way too easy to just be an online business that offers no actual customer service
    Isn't the advantage of coming off gross not that it saves NI?

  5. #5

    bored now

    eek's Avatar
    Join Date
    Jun 2010
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    Quote Originally Posted by coder View Post
    Isn't the advantage of coming off gross not that it saves NI?
    Yes - you should get the employer NI contribution which you would otherwise lose (but best to explicitly ask the question to the umbrella company).

    It's why I didn't get some other posters comment that a 1% pension fee was hideous. It's not great but the thing that is most important is the overall fee to get the money into your SIPP (if so desired). Which means you need to know the total figure for initial purchase, management and any exit fees - and that could differ significantly by pension company.
    merely at clientco for the entertainment

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