The Umbrella Pension Scheme – ensuring you and not the taxman benefit from your Contract
  • Funded via employer contributions from your contract
  • Uniquely avoids Employers and Employees national insurance as well as income tax
  • Benefit from up to 64% overall tax breaks depending on your marginal rate
  • No initial set-up fees so all of your money is invested
  • Penalty free payment holidays
  • Move the pension to a new employer if you change jobs or continue to invest personally
Using Salary Sacrifice to minimise your tax-bill
Investing via a salary sacrifice agreement is one of the most tax efficient investment options that are available to you. The scheme involves you taking as little as the minimum wage and covering your fees whilst all of your other income can be invested into a pension. Whilst this level of investment may not be sustainable over a long period of time, it can represent a significant boost to your eventual retirement fund whilst saving you tax and NI contributions on your income. 
You can also invest personally in the pension up to 100% of your remaining salary although this income will be subject to NI deductions. The only cap on how much you can invest is the lifetime allowance at £1.2m and the annual allowance at £40,000 (2014/15).
Important Information
The information provided above is factual and does not consider your personal circumstances. We advise you to read the information provided and decide whether or not the plan appeals to you as we are not advising that the plan is suitable for you. 
Umbrella has instructed ContractorFinancials to set up and administer the plan. As Independent Financial Advisors they will be able to answer your questions and give advice as to the suitability of the scheme. If you are unsure as to whether the Umbrella scheme is right for you then you should seek expert advice from them. 
If you consider joining the scheme then ContractorFinancials will provide you with a personal illustration and a document outlining the key facts of the contract to give you a better understanding of the benefits of the plan.
Flexible pensions to suit your needs.
Whilst the unbeatable tax breaks associated with pension investment have been around for more than a decade now, the rigid nature of how you access the funds in retirement has undeniably been a stumbling block for some Freelancers. Since the 2014 Budget, you will be able to exploit the upfront tax benefits, grow a fund tax efficiently, but then have access to the bulk of the fund at or during retirement. For the first time, you could withdraw the whole of your pension fund at age 55 and you are no longer confined to purchasing an annuity at age 75 so there is potential for you to continue taking on part time contracts or similar well past retirement age to supplement your income. Pension investment may also become a key plank of any estate planning work that you undertake to gift pensions to any dependents.
For more detailed information and a quotation based on your needs please call 0208 090 0702 or email
The value of investments may fall as well as rise and past performance is not a guide to future returns
Financial advice is given by ContractorFinancials, which is a trading name of Contractor Financials Ltd and is regulated and authorised by the Financial Conduct Authority.

I have used both as accountants for my limited company and as an umbrella company. Support has been excellent and payments on time. I would say that they are a little more expensive than others for their services, but cannot fault them and their staff's professionalism and courtesy.

Nigel June 2019