Originally posted by northernladuk
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Umbrella companies and pension providers
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Originally posted by Silverskin View PostWell exactly, I don't see how the umbrella company can have an issue with carry forward but apparently some do. Maybe someone else is able to comment on this?Comment
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Originally posted by Silverskin View PostHi,
does anyone know from that list of umbrellas which ones don't allow carry forward for the SIPP contributions? I'm particularly interested in Nasa and Paystream in this respect.
Also does anyone know how easy it is to change your SIPP contribution during the tax year, should the need arise? How does that work if you lose your job for example?
I've only been looking at a limited subset of the list, due to my agency restricting the umbrellas they will work with. However, I can report that Paystream will let you pay into your own SIPP, and use carry forward, BUT they told me they would only let me alter my contribution rates once per year! They seemed very touchy when I pressed them on this point. I can understand they want to avoid extra administration, but this is a red flag for me.
In contrast, Giant will also let you pay into your own SIPP, and use carry forward, and seem a bit more flexible about changing contribution rates, saying "it's up to the pension provider".
Some others have indicated that changing contributions every quarter is reasonable, but they won't entertain changing them more frequently than that.
In conclusion, before signing up with an umbrella, you definitely want to confirm your specific pension arrangements including how often they'll let you change the contributions (maybe also the scheme too).
z.Comment
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Originally posted by Silverskin View PostWell exactly, I don't see how the umbrella company can have an issue with carry forward but apparently some do. Maybe someone else is able to comment on this?
Some may not allow salary sacrifice, some may want to limit how much you can salary sacrifice, but they simply cannot know (unless you tell them) what your current allowance is.
Even if they think that maxing out your contribution at £3333/month stops you using carry-forward, it does not - you could have made contributions elsewhere for the current tax year.Comment
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Originally posted by zcapr17 View PostBrookson won't do carry forward, they only want to let you contribute up to £40k/yr, but then they won't allow contributions to your own SIPP either.
A more correct statement would be: Brookson limit your contributions to £40K/year.Comment
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Originally posted by Paralytic View PostHow do they know you've not already contributed £40K this year and the £40K you're now contributing via them is actually a carry forward?
A more correct statement would be: Brookson limit your contributions to £40K/year.
Thd (previous) additional payment into your Existing scheme would be the carry forward from a Previous year
sorry for the caps - stupid phonesmerely at clientco for the entertainmentComment
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Trying to understand salary sacrifice options
Thanks all for providing insight.
Sorry I may just repeat the question here again, but this is really confusing. I will put down my situation and if anyone can help by suggesting, that will be really appreciated.
- I have a NEST pension (salary sacrifice) account from July 2018 but I haven't been contributing anything to it.
- I have a AEGON personal pension account since April 2015 and have been contributing £300 a year.
Now I will have a contract inside IR35 from 6th April 2020. This is what I want to do -
- Contribute using salary sacrifice for year 2020/2021 and I have been told by AGEON and Scottish Widows that I will need a financial adviser to open a new account for salary sacrifice?
- Contribute for previous 3 years, if my earning allows (after taking the minimum recommended by umbrella company) as a salary sacrifice. I am hoping I can do it as I had a pension account all the time.
- So to give a rough idea - can I contribute 40K (for 2020/21) + 39.7K (for 2019/20) + 39.7K (for 2018/19) + 39.7K (for 2017/18) = total = 159K (approx)
So every month = 13250 approx, if I am earning lets say 15000 every month or I have got everything wrong here?
Thanks a lot for your help.
RegaComment
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Originally posted by zcapr17 View PostI'm looking for an umbrella that will be reasonably flexible in changing pension contributions, for example on a quarterly basis, and it does seem there are significant differences in the stance each umbrella is taking on this point.
I've only been looking at a limited subset of the list, due to my agency restricting the umbrellas they will work with. However, I can report that Paystream will let you pay into your own SIPP, and use carry forward, BUT they told me they would only let me alter my contribution rates once per year! They seemed very touchy when I pressed them on this point. I can understand they want to avoid extra administration, but this is a red flag for me.
In contrast, Giant will also let you pay into your own SIPP, and use carry forward, and seem a bit more flexible about changing contribution rates, saying "it's up to the pension provider".
Some others have indicated that changing contributions every quarter is reasonable, but they won't entertain changing them more frequently than that.
In conclusion, before signing up with an umbrella, you definitely want to confirm your specific pension arrangements including how often they'll let you change the contributions (maybe also the scheme too).
z.
I want my SDC decision first as well, as obviously if I can claim mileage it gives me more revenue..not holding my breath though as its Inside IR35 and it seems the SDC questions are very similar to the CESTComment
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Originally posted by Paralytic View PostHow do they know you've not already contributed £40K this year and the £40K you're now contributing via them is actually a carry forward?
A more correct statement would be: Brookson limit your contributions to £40K/year.
It does make me wonder, most pension providers don't seem to stipulate any limit to contributions, so it would seem very easy to exceed the annual pension contribution limit. Presumably HMRC get some kind of reporting from pension operators and will eventually come after you at some point if you've exceeded the limits...?Last edited by zcapr17; 20 February 2020, 00:00.Comment
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Originally posted by eek View PostNot quite, a more correct statement is that you can’t carry back on a brooks on pension as you only joined it this year.
Thd (previous) additional payment into your Existing scheme would be the carry forward from a Previous year
Quote from my pension provider:
To use carry forward you need to have had a SIPP or other type of pension in place in each of the three years. But you don’t need to have made any contributions and your new contribution does not need to be paid into the same pension.Comment
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