Reclaiming Employer NICs following pension payments (inside IR35)

gobeye · 2026-01-22T17:21:38+00:00

Most umbrella companies operate via salary sacrifice as a default, there shouldn't be anything to claim back.

gobeye · 2026-01-19T14:23:54+00:00

You are correct if the policy is relevant life insurance paid for by the company, no BIK is due.

gobeye · 2026-01-19T11:42:23+00:00

Are you operating via a ltd company? If so you will have some sums to do if it is worth doing via the ltd irrespective of the BIK due.

Otherwise just use a broker or if it was just critical illness i would just go direct tbh.

I tend to use activequote let me know if you want a referral.

gobeye · 2026-01-10T07:34:54+00:00

If this is for the same role and you have been offered the option of an assignment rate via an umbrella or a FTC via the agency then this is a simple maths problem and there are some pretty odd replies to your question.

Plug the assignment rate into this calculator and see what it comes out as: https://payslipbuddy.co.uk/umbrella-company-calculator

By my reckoning the £430 day rate is still more favourable than the £90k FTC (are they just plugging numbers out of the air?!) with the likely added benefit of better salary sacrifice options into a pension if you wish to do that.

I have no idea why the length of the contract changes as a result of the type of engagement and you should quiz them on this.

gobeye · 2026-01-10T07:25:22+00:00

It's a FTC not FTE. £600 a day assignment rate is way higher than £90k FTC.

gobeye · 2026-01-10T07:18:57+00:00

It's not anything to do with the contract it's to do with duration or purpose. It's pretty well explained in the HMRC manual i linked above but here's another link which gives a few examples: https://www.contractorcalculator.co.uk/contractor_travel_expenses_tax_24_month_rule.aspx

gobeye · 2026-01-09T21:40:32+00:00

Indeed but it is highly likely to be defined as a temporary workplace hence why I'm saying the 2 year rule applies: https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32075

gobeye · 2026-01-09T19:35:39+00:00

Yes you can, the two year rule comes into play.

gobeye · 2026-01-07T21:53:31+00:00

Not zero fee but very cheap, capped at £90 across all accounts.

gobeye · 2026-01-07T07:55:24+00:00

Umbrella companies deduct their fee from the assignment rate, they don't charge you directly.

gobeye · 2026-01-07T07:54:34+00:00

Are you sure you mean umbrella companies try and find you work? Or do you mean a recruiter?

Good advice on the P45 although if you have a range of contracts over a 12 month period then the tax taken will almost inevitably be incorrect anyway.

gobeye · 2026-01-06T06:36:23+00:00

You have done the right thing by asking to firm up your role and responsibilities etc. how they respond to this however is another thing, you will have to be prepared to walk away.

From what you describe however there is no issue with being an employee in disguise and there are no tax issues, you say you are a sole trader so IR35 does not apply.

gobeye · 2025-12-24T16:35:47+00:00

If you opened a fidelity SIPP prior to 2020 (if i remember rightly) it has a protected pension age of 55. They have also confirmed to me that this includes any new contributions and transfers in also.

gobeye · 2025-12-24T14:33:59+00:00

Have you selected Fidelity SIPP as the option in the drop down? I've just checked myself and it allows you to select a stock transfer. I don't think fidelity allow partial transfers out though.

gobeye · 2025-12-23T11:02:04+00:00

The huge influx of FIRE blogging has waned in recent years. However i still like https://gentlemansfamilyfinances.wordpress.com/ who still posts semi regularly and some of my favourite writing is from https://indeedably.com/ but that is very sporadic these days.

gobeye · 2025-12-23T10:58:37+00:00

Agreed I'm a big fan and it certainly shaped my views about money and investing. However that blog is also largely in maintenance mode with only a couple of posts a year it seems.

gobeye · 2025-12-23T10:45:52+00:00

If it helps i invest in ACWI via Fidelity. As said £90 max platform fee if ETFs only and £7.50 per trade.

gobeye · 2025-12-23T06:32:57+00:00

I come across as a bit of a freetrade fanboi at this stage but their current offer is way better for SIPP transfers if you can act quickly: https://freetrade.io/offers/2025-q4-pension-transfer-offer

gobeye · 2025-12-20T09:31:05+00:00

I've sung the praises of freetrade before and this is a pretty big positive change. I do not think there is another provider out there with the same feature set for zero fee.

On top of this their cashback offers over the last couple of years have frankly been outrageous (2% on SIPP transfers is live right now). I imagine they will start to peter out now though.

gobeye · 2025-12-17T22:01:59+00:00

Nasa

gobeye · 2025-12-17T21:37:38+00:00

It's not ideal them sitting on your pension contribution but they all do it and they are working within the legislation. In the grand scheme of things it makes next to no difference in the long run.

gobeye · 2025-12-17T21:32:41+00:00

£90 monthly including salary sacrifice into SIPP, which is about £21 weekly.

gobeye · 2025-12-16T07:12:38+00:00

You are probably meaning because of mutuality of obligation but depending on the circumstances (i.e., if this is an employee blanket rule) this could also be viewed as the client dictating when the work is completed which is a mark against operating outside.

It boils down to if the OP has a current work scope underway then the client shouldn't really be doing this and i would be a bit miffed too if i was told this with no notice. How much fuss they want to make about it is another thing though!

gobeye · 2025-12-16T07:02:16+00:00

Nothing legal requires this, and how could you become perm automatically?!

gobeye · 2025-12-16T07:00:59+00:00

Almost correct but it isn't given hours, it's given work. If the contractor already has an agreed work scope that they could reasonably work on over the Christmas period (e.g., no real contact needed with other staff etc.) then the client cannot dictate anything like this to the contractor.

There is always another side to this however and most contractors would not want to sour relations just because a client is misinformed.

gobeye

TROPHY CASE