Umbrella Director v Annuity Agreeement

chiefwiggam

Hi,

I was on the lookout and comparing a few services that offer Umbrella solutions for contractors (as apposed to the palaver of setting up a limited company since I am kind of looking for a short term solution).

I was all set to choose one as they were all similar anyway, when suddenly another firm popped up offering an "Annuity Agreement" solution. The retention rate of monthly salary was just over 10% more than the umbrella services and so I thought I would try to find out some more info on the subject.

Anyone familiar with this set up and whether its all legit ?

thanks

wally1990

Annuity Agreement?

Annuity is just a retirement fund that provides fixed payment from age of 60 when contributed to with non PAYE income

Seems like a sale technique to get you in the door

Any accountant can do a RAC (when set up by a qfa advisor)

and also, the relief is only on income tax where a executive pension maybe better with USC and prsi included

I'd be wary of that

Also, it's not a solution , what ever the **** that is supposed to be

It's essentially a LTD company I assume they provide to you where you operate as a PAYE worker of that or a proprietary director with a RAC set up with a fixed payment from 60 from what you put in (subject to conditions)

A QFA advisor is the best here , not an accountant,

Many umbrella providers will have a pensions team /qfa advisors you can speak with

Ask your accountant now about it before you consider moving

Also, you need to know what you want here (you mentioned short term) what's your actually plan here ?

Retirement planning ?

Maximising take income in the short term?

Etc

chiefwiggam

thank you for your reply,

So I am looking for something short term, probably less than a year - so just optimizing for max take home income. Setting up a ltd company for something less than a year is not worth the hassle.

But obviously don't want to get involved in anything suspect