Umbrella questions about SDC expenses, pensions and Scottish tax bands

[northernladuk]

Hi everyone,

As an update to this thread, I decided to go with Paystream as they said they could make payments directly into my Fidelity SIPP.

I started the contract this week, and got in touch to arrange the pension contributions, only to be told they don't support Fidelity.
As you can imagine, I'm not very happy.
It seems that one dept hasn't been talking to the other dept properly.
From what we could work out, the problem seems to be that Fidelity can only do regular payments by Direct debit - not different amounts each month as would happen as a contractor.

Does anyone use an umbrella that does make contributions to Fidelity?

if not, it looks like I'll need to start a SIPP with a new provider. whether I stick with Paystream is a different matter...

I think swapping pension is going to be common place regardless of the sales pitch about paying in to our own, as the post above demonstrates.

When I thought I was facing this my plan was to open something on a popular platform, probably HL or whatever research came up with and then stick to that for awhile. You can always transfer them at the end of the gig. Just another level of pain in the ass put our way that will become the norm.

I'd be following up the fact they said yes then no though. If this is the new tactic to get you in it needs stopping quickly.

[eek]

I think swapping pension is going to be common place regardless of the sales pitch about paying in to our own, as the post above demonstrates.

When I thought I was facing this my plan was to open something on a popular platform, probably HL or whatever research came up with and then stick to that for awhile. You can always transfer them at the end of the gig. Just another level of pain in the ass put our way that will become the norm.

I'd be following up the fact they said yes then no though. If this is the new tactic to get you in it needs stopping quickly.

I don't think it's a tactic more a slight lack of care.

Can you pay money into xyz pension - sure not a problem.

xyz has this restriction - opps we weren't aware of that.

[Paralytic]

I don't think it's a tactic more a slight lack of care.

Can you pay money into xyz pension - sure not a problem.

xyz has this restriction - opps we weren't aware of that.

Given my experience with Paystream, I'd not be so sure. But, it is reliant on the individual to ask the right questions up front.

From my correspondence with them, NASA do allow payments into pre-existing pensions (and I specifically got them to confirm they could make payments into my provider) and also confirmed they would allow you to change the amount (but did say they'd prefer this was not a monthly thing).

They charge £5 extra but that reduces to £0 for pension providers who they have a good on-going relationship with (Aviva being one).

[gaz777]

I don't think it's a malicious thing. When I phoned today, Fidelity was still on the agent's list. It was only when he double-checked with the pension people he found it had been removed.

Fidelity do actually allow ad-hoc employer contributions: How can my employer make contributions to my pension? | Help & Support
But it looks like a manual form and payment, so maybe it's too complicated / too much work for Paystream? Maybe Paystream initially thought Fidelity would work, then had to drop them after looking into the details?
That's why I was curious if any other umbrella would do fidelity?

I only changed SIPP last year, due to BestInvest bumping their fees. I'd prefer not go through the hassle of setting up a 3rd provider, but that may be the only solution

[BR14]

i used contractorumbrella on several gigs.
payment was into their tame pension <scottish widows>.
i transferred <free> into my main <fidelity> fund afterwards.
no real hassle, and no costs.

[northernladuk]

i used contractorumbrella on several gigs.
payment was into their tame pension <scottish widows>.
i transferred <free> into my main <fidelity> fund afterwards.
no real hassle, and no costs.

Yup. I moved out of Scottish Widows to HL and was a cinch. I'm guessing the whole process is that simple, not just picking two good options that are willing to do it properly.

[northernladuk]

I only changed SIPP last year, due to BestInvest bumping their fees. I'd prefer not go through the hassle of setting up a 3rd provider, but that may be the only solution

Piece of piss setting and iii or HL one up and the same to transfer out.

[lucyclarityumbrella]

The simple thing you need to do is to check with your pension provider first; ideally they need to accept adhoc, non dd payments from the employer, not on a set date, not with a set amount - then you know if it's feasible or not!

As many have said, it may still even be worth paying into their group pension scheme, and transferring our after, at least you still gain the salary sacrifice element.

[gaz777]

The simple thing you need to do is to check with your pension provider first; ideally they need to accept adhoc, non dd payments from the employer, not on a set date, not with a set amount - then you know if it's feasible or not!

So Fidelity do take ad-hoc payments. But maybe the form is too much work to be viable?
I'll probably just go with HL or AJ Bell. More expensive, but probably easier than trying to change umbrella at this point.

I've a friend who's just been told Parasol will pay into any SIPP. However, they've only started this in the last few weeks due to demand.
While interesting, I don't fancy being a guinea pig for their new services...

[andydd68]

So Fidelity do take ad-hoc payments. But maybe the form is too much work to be viable?
I'll probably just go with HL or AJ Bell. More expensive, but probably easier than trying to change umbrella at this point.

I've a friend who's just been told Parasol will pay into any SIPP. However, they've only started this in the last few weeks due to demand.
While interesting, I don't fancy being a guinea pig for their new services...

Just started with Parasol and they can pay into PensionBee easily enough, took a few emails back n forth, they will only do monthly (not sure wether its a set date) and only a set amount not a %

As for expenses, etc..they seem happy enough to pay mileage, Im working on assumption Im not covered by SDC (yes I know this was discussed earlier in the thread, but SDC is not IR35 although its similar in scope).

They 'will' also pay expenses on software/equipment bought solely for the role, although in practice I found this very difficult and gave up trying to persuade them my O365 licence of £5 was a valid expense.