The ii SIPP for Nasa Umbrella contractors
Nasa Umbrella contractors can benefit from salary sacrifice pension contributions & transfer existing pensions to an ii SIPP with ease. Learn about our Which? Recommended SIPP, the benefits of salary sacrifice & how to set up contributions in a few easy steps.
Please remember: The value of investments made in a SIPP can fall as well as rise & you may end up with a fund at retirement that’s worth less than you invested. You can normally only access the money from age 55 (age 57 from 2028). The ii SIPP is intended for customers who have sufficient knowledge of investing to make their own investment decisions. If you are unsure about the suitability of a SIPP, or transferring existing pension plan(s) into a SIPP, you should seek advice from an authorised financial advisor. Tax treatment depends on individual circumstances & may be subject to change in the future.
It is important to understand that the use of Salary Sacrifice or the ii SIPP is not a recommendation and that the ii SIPP is not an Employer, Workplace or Auto Enrolment Pension. You can arrange with your employer or umbrella company to have contributions paid into your ii SIPP via Bank Transfer. The ii SIPP is a Personal arrangement between you and interactive investor, and you are solely responsible for agreeing & monitoring contributions made by your employer.
Introducing salary sacrifice contributions & the ii SIPP
When signing up to a salary sacrifice arrangement with Nasa Umbrella you are agreeing to reduce your salary in return for pension contributions. Therefore, your contributions will be deducted from your overall contract income and you will pay less PAYE tax & less employee NI. Nasa Umbrella will also pass on any employer NI savings.
It is important to understand that the use of Salary Sacrifice or the ii SIPP is not a recommendation and that the ii SIPP is not an Employer, Workplace or Auto Enrolment Pension.
You can also use the ii SIPP to bring together other pensions so you can manage everything in one place via our website or our user-friendly app. Before transferring a pension, please check you won't lose any valuable benefits or whether exit fees apply.
interactive investor is the #1 flat-fee SIPP provider in the UK and the second largest investment platform in the UK by assets under administration.
A great value SIPP
Most pension providers charge a percentage-based fee that gets taken out of your pension every year; this means the more your pension grows, the more you pay.
At ii, we're different. We charge a low, monthly subscription fee which means you could save thousands in pension charges.
When you open an ii SIPP you will start on our £5.99 a month Pension Essentials plan. When the value of your pension grows above £50,000 you will move onto our £12.99 a month Pension Builder plan.
Have a question about our SIPP? Call us on 0345 646 2390.
8:30am to 5pm - Monday to Friday
The ii SIPP explained
- A SIPP works like any other pension but gives you more control and flexibility over how your pension is invested.
- With an ii SIPP it's easy to invest. Our low-cost Quick-start Funds are an ideal way to get started. You can also choose from a wide range of shares and funds.
- The tax benefits of a SIPP are the same as any pension. Any money you pay in is subject to tax relief: 20% as a basic taxpayer, 40% as a higher-rate taxpayer, and 45% if you're an additional-rate taxpayer.
- Contractors using Nasa Umbrella’s salary sacrifice scheme can save on employee NI contributions and Nasa Umbrella will also pass on any employer NI savings.
- You can use the ii SIPP to combine and consolidate both personal and old workplace pensions into one. This can make it easier to keep track of your retirement savings and take advantage of ii's low-cost SIPP.
It is important to understand that the use of Salary Sacrifice or the ii SIPP is not a recommendation and that the ii SIPP is not an Employer, Workplace or Auto Enrolment Pension.
*We've crunched the numbers: If you invested in our SIPP, after 30 years you could be better off by £85k. That's more than £1,000 difference a year, just for using us over another platform. Lots of things can affect your final figure. But the lower the fees, the more money you'll keep for yourself. This is just for illustration if all other factors were the same. Don't just take our word for it: check our working out here.
Get £200 when you open a SIPP.
When you open an ii SIPP and fund it with £15,000 or more, we’ll give you £200 cashback.
And don't forget, transferring your pension to our SIPP counts towards the cashback. So if you’ve been thinking of transferring, here’s your chance to make the move to ii.
Offer ends 31 May 2024. New customers only. Cashback paid after 12 months. Terms apply.
Check before you transfer
Please check that you won’t lose any safeguarded benefits if you transfer. This could include guaranteed annuity rates or a lower protected pension age than the Normal Minimum Pension Age (rising from 55 to 57 in 2028). It’s also worth checking for any transfer-out charges.
It's important that you take enough time to decide whether transferring your pension is right for you. If you need more time and wish to qualify for this offer, please wait until the next offer period - we promote transfers to the ii SIPP on a regular basis.
Salary sacrifice tax savings illustration
Nasa Umbrella allows you to set up a salary sacrifice arrangement to pay into a SIPP. This diverts some of the overall contract income Nasa receive for you into a SIPP, giving you savings on income tax and employee NI, and reducing employment costs retained by Nasa Umbrella.
Example: Earnings of £125,000 & salary sacrifice of £40,000.
Without SIPP:
- Available contract income to Umbrella: £143,000 pa
- SIPP Payment: £0pa
- Available taxable pay to You, after employment costs: £125,297 pa
- Expected net pay: £76,686.50 pa
With SIPP:
- Available contract income to Umbrella: £143,000 pa
- SIPP Payment: £40,000 pa
- Available taxable pay to You, after employment costs: £90,304 pa
- Expected net pay: £61,426 pa
- Net pay and SIPP contribution combined: £101,426 pa, giving an overall saving of £24,739 pa
Calculations provided by Nasa Umbrella. For a personalised illustration please contact Nasa Umbrella.
It is important to note that when you come to take income from a pension it is treated as taxable income and you will pay tax at the applicable marginal rate. Tax treatment depends on your individual circumstances and may be subject to change in the future.
Assumptions:
- 1257L tax code, with an adjusted allowance for those with a taxable income over £100k pa.
- SIPP contributions will reduce overall taxable income, and tax-free allowance is added back in where relevant.
- National Insurance Category A
- No workplace pension contribution
- No attachment of earnings orders
Calculations provided by Nasa Umbrella. For a personalised illustration please contact Nasa Umbrella.
How to set up SIPP contributions as a Nasa Umbrella contractor:
2.
Complete the SIPP contributions form
You can do this easily by following our step-by-step SIPP Contributions Form Guide.
3.
Instruct Nasa Umbrella to start your contributions
You can do this by completing the Nasa Umbrella Pensions Contributions Form.
Once instructed, the contributions will start from the agreed date.
It is important to understand that the use of Salary Sacrifice or the ii SIPP is not a recommendation and that the ii SIPP is not an Employer, Workplace or Auto Enrolment Pension. You can arrange with your employer or umbrella company to have contributions paid into your ii SIPP via Bank Transfer. The ii SIPP is a Personal arrangement between you and interactive investor, and you are solely responsible for agreeing & monitoring contributions made by your employer.
SIPP Contributions Form Guide
Use this guide to learn how to complete the SIPP contributions form (it should all take less than 5 minutes).
SIPP charges at a glance
The ii SIPP is £5.99 a month for pensions under £50,000 and £12.99 a month for pensions above £50,000.
View our full charges and service plans.
- If you want to buy or sell shares and funds, trades usually cost £3.99. Or, you can use our Regular Investing service - there are no trading fees when you invest this way.
- There are no extra charges for taking money out of your pension.
- There are some other fees for things like foreign currency exchange and Stamp Duty on shares. View our full charges
See how we compare to some of the largest pension providers. Read more about our analysis.
What our customers say
SIPP guides
Learn more about how pensions work, the latest pension rules and how to make the most of your SIPP:
How can Pension Wise help?
If you have a defined contribution pension scheme and are 50 or over, then you can access free, impartial guidance on your pension options by booking a face to face or telephone appointment with Pension Wise, a service from MoneyHelper.
If you are under 50, you can still access free, impartial help and information about your pensions from MoneyHelper.