In 2 words YES and NO.  We hope that clears that up…or maybe not 🙂 The truth is that if you are in a position where you could salary sacrifice in to a pension then the overall return from your assignment rate with an umbrella company such as Quad Management could realistically be much higher.  This is if you treat the overall return as the NET salary you receive and the amount paid in to your pension pot.  The savings here can actually be significant, IF you can afford to put that money in to a pension and not take it as  salary.

On the other hand salary sacrifice is just that, it does reduce the amount of money you receive in each pay packet.  Yes you will pay less in deductions, but the overall affect will still be less take home.  For many contractors this isn’t an issue as they are structured not to live hand to mouth and the money that doesn’t go to HMRC instead goes in to pension and even possibly early retirement.  For others that work multiple assignments at the same time, perhaps mixed between inside and outside IR35 then an umbrella pension salary sacrifice makes perfect sense for their inside engagements through an Umbrella.

It really is a very personal choice but one we are always happy to help explain and go through your options.  If you’re looking for an Umbrella Company that offers flexible salary sacrifice options then get in touch and we’d be only to happy to help.