Simple Pension question Simple Pension question
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  1. #1

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    Default Simple Pension question

    When umbrellas offer a company pension (People, Now, etc) are the pension payments effectively coming out of my own salary?

    In other words, is there any point consigning up? Or am I better off simply paying into my own scheme such as the Aviva platform?

  2. #2

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    Quote Originally Posted by JamesC34 View Post
    When umbrellas offer a company pension (People, Now, etc) are the pension payments effectively coming out of my own salary?

    In other words, is there any point consigning up? Or am I better off simply paying into my own scheme such as the Aviva platform?
    So you pay an umbrella like £80 a month in fees to cover its costs (employees/fixed costs etc) giving them a profit of about £5-£10 from you per month

    From this £5-£10 profit do you think they could

    Pay several hundreds of employers NI
    Pay several hundreds into your pension

    Or do you now think it comes out of your salary ?


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  3. #3

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    Quote Originally Posted by JamesC34 View Post
    When umbrellas offer a company pension (People, Now, etc) are the pension payments effectively coming out of my own salary?

    In other words, is there any point consigning up? Or am I better off simply paying into my own scheme such as the Aviva platform?
    Employers NI comes out as a percentage of your "own salary" (more correctly, the invoiced amount) before other deductions. Any salary sacrifice comes off before the NI is calculated, therefore payments via that route will reduce your overall deductions. It will also reduce Income Tax and Employees NI.

    Note that some Umbrella's already let you pay into your own pre-existing scheme, including Aviva.

    As a few Umbrellas for illustrations with and without pension deductions and you'll see the difference.
    Last edited by Paralytic; 17th April 2020 at 07:31.

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    Quote Originally Posted by GhostofTarbera View Post
    So you pay an umbrella like £80 a month in fees to cover its costs (employees/fixed costs etc) giving them a profit of about £5-£10 from you per month

    From this £5-£10 profit do you think they could

    Pay several hundreds of employers NI
    Pay several hundreds into your pension

    Or do you now think it comes out of your salary ?


    Sent from my iPhone using Contractor UK Forum
    I admitted it was a 'simple' question

  5. #5

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    Quote Originally Posted by Paralytic View Post

    Note that some Umbrella's already let you pay into your own pre-existing scheme, including Aviva.
    Interesting. Are you able to say which ones?

    I did try to find some, but wasn't successful.

  6. #6

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    Quote Originally Posted by JamesC34 View Post
    Interesting. Are you able to say which ones?

    I did try to find some, but wasn't successful.
    https://www.contractoruk.com/forums/...providers.html

  7. #7

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    It is simple so I'd suggest you ring your employer and get a better grasp of exactly how you are paid and how it all works.

    That said, if you can chosen give Lucy at Clarity Umbrella a ring. They have unlimited payments in to their pension set up. All you have to do at the end of the engagement is move it in to you personal one whichbis very easy.
    Last edited by northernladuk; 17th April 2020 at 08:47.
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  8. #8

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    Quote Originally Posted by northernladuk View Post
    That said, if you can chosen give Lucy at Clarity Umbrella a ring. They have unlimited payments in to their pension set up. All you have to do at the end of the engagement is move it in to you personal one whichbis very easy.
    thanking you.

    Happy to help if you want me to talk you through things and make sure you know exactly what you are getting.

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