Auto enrolled in NEST - can I use the scheme to my advantage.

biscan25

Albermarle said:

I opted out and paid into a HL SIPP via salary sacrifice which works out as 0.45% + 0.05% investment fees.

For the benefit of other readers, I think it is worth pointing out that a 0.05% investment fee is not typical, and maybe in a very focused investment that may not suit the average investor. Do not know for sure of course without knowing what it is. 

Sorry, yes to clarify, it's just a equity index tracker, so 100% equity. I'm over 25 years from retirement so can ride volatility. Their tracker funds are typically in the 0.1% range, and active management obviously much more.

Albermarle

biscan25 said:

Albermarle said:

I opted out and paid into a HL SIPP via salary sacrifice which works out as 0.45% + 0.05% investment fees.

For the benefit of other readers, I think it is worth pointing out that a 0.05% investment fee is not typical, and maybe in a very focused investment that may not suit the average investor. Do not know for sure of course without knowing what it is. 

Sorry, yes to clarify, it's just a equity index tracker, so 100% equity. I'm over 25 years from retirement so can ride volatility. Their tracker funds are typically in the 0.1% range, and active management obviously much more.

You might want to consider using a cheaper platform than HL. Probably the main advantage of HL is a large choice of investments, good customer service, good website, but with such a simple investment you do not need all that.

y002cjw

biscan25 said:

 you should take the employers £100/month contributions anyway, and pay into a SIPP on top. Otherwise you are throwing money away,

You are right and that's exactly what I've done. Contract is up shortly. I'll transfer it into my SIPP once my final pay comes through. Thanks.

y002cjw

cloud_dog said:

y002cjw said:

I'm in the middle of a 3 month contract and have been auto enrolled into NEST. I have until tomorrow to opt out! This will be my only employment of the tax year. I'm paying 146 a month and the employer 110 a month.

I already have a SIPP with HL.com. 

My question is, as this is only a 3 month contract, could I pay ALL my earnings into NEST to take advantage of any tax reliefs, as my earnings will be below the £40K maximum for pensions contributions? If so might it make sense to only pay in the amount above the 12570 tax allowance?

Are NI contributions taken out of pay regardless of pension contributions?

I guess I could I do all this in my SIPP instead, as far as I can see all i would lose out on is the 110 a month contribution from my employer?

TIA

Does this mean you are being paid under an umbrella company? 

If so, if the umbrella company makes the pension contribution doesn't this equate to SS, insofar as it is paid as a business expense, as opposed to an actual personal contribution?

cloud_dog said:

y002cjw said:

I'm in the middle of a 3 month contract and have been auto enrolled into NEST. I have until tomorrow to opt out! This will be my only employment of the tax year. I'm paying 146 a month and the employer 110 a month.

I already have a SIPP with HL.com. 

My question is, as this is only a 3 month contract, could I pay ALL my earnings into NEST to take advantage of any tax reliefs, as my earnings will be below the £40K maximum for pensions contributions? If so might it make sense to only pay in the amount above the 12570 tax allowance?

Are NI contributions taken out of pay regardless of pension contributions?

I guess I could I do all this in my SIPP instead, as far as I can see all i would lose out on is the 110 a month contribution from my employer?

TIA

Does this mean you are being paid under an umbrella company? 

If so, if the umbrella company makes the pension contribution doesn't this equate to SS, insofar as it is paid as a business expense, as opposed to an actual personal contribution?

Employing company deems all contracts inside IR35. so no it's not an umbrella contract but some form of PAYE agency contract. I get paid day rate plus a holiday pay rate for each day worked. Umbrella route was an option but time was short.