Pensions

Parasol Pension Scheme – more money out of your contract and into your pocket

• Employer contribution funded scheme
• Exempt from income tax and National Insurance deductions
• Very tax efficient providing 39% or 48% tax relief dependent on your tax payments
• Allows payment holidays without penalties
• A Personal Pension that moves with you if you change employment
• No initial set-up fee – 100% of your contributions are invested

The in-house Parasol group personal pension scheme is an essential way to ensure that you work in the most tax efficient way possible.

The pension is funded as an employer contribution direct from your payroll which is exempt from income tax at 22% (basic rate) and 40% (higher rate taxpayer) as well as both the employers and employees national insurance deductions.

The effective rate of tax relief increases to 39% or 48% respectively, meaning the pension represents a great tax efficient means of getting money out of your contract and into your own pocket.

As well as offering you a scheme where admin charges are kept low and fund performance is maximised, Parasol’s pension scheme, because it’s designed around your contracting needs, gives you complete flexibility to take payment holidays when you need to without any penalties.

Should you leave Parasol at any stage, you have the freedom to stop the investments, continue funding the plan as a personal contribution or your new employer can make payments into the scheme.

Since 6th April 2006, the rules that relate to pensions have been relaxed. ParasolFinancials can help you invest for your future and dramatically reduce your tax bill as a result.

By far the most efficient method of you investing is via the salary sacrifice arrangement that we can put in place for you. Subject to you maintaining the minimum wage and covering your fees you can have virtually all other income transferred to the pension and this will dramatically reduce tax and NI payments.

In addition, you can invest further amounts personally up to the level of 100% of your remaining salary, although this investment will not qualify for the savings in National Insurance associated with the employer contribution.

Please note that the information provided here is factual and does not take account of your personal circumstances. It does not constitute advice that you join the Plan; you are invited to read the literature and make up your own mind on the information provided.

Parasol Ltd has appointed ParasolFinancials, who are Independent Financial Advisers, to set up the Pension Plan and provide ongoing administration and consultancy. Parasolfinancials can answer your factual questions and are available as a source of impartial advice. If you are not certain whether this Plan is suitable for your circumstances, you should seek expert advice from them.

This website provides you with an overview of the Parasol Pension Plan but should you consider taking up the offer of membership a personal illustration and Key Features document (this is a document that outlines the key aspects of the contract) will be provided to you giving details of the estimated benefits of the plan.

ParasolFinancials is a dedicated company of Independent Financial advisers who
specialise in tailoring financial planning solutions to the needs of freelancers and contract workers.

ParasolFinancials administers the Group Stakeholder Pension scheme for Parasol and offer personalised advice to Parasol Flexible Employees.

Please take time to read the ParasolFinancials Client Agreement which outlines our regulatory status.