Pension Contribution - Salary Sacrifice or Lump Sum?

[VladD]

I'm currently working as a contractor through an umbrella company. The umbrella company can set up a salary sacrifice scheme and pay it into my personal pension, but I'm wondering if it's just easier to make a lump sum payment once a year and then sort out the tax situation via self assessment. Any pros or cons either way?

[LeoSayer]

Salary sacrifice is more tax efficient because it won't include employee or employer NI.

[VladD]

Ah, of course, thanks.

[theboss]

As above. Some umbrellas are better than others at facilitating this. The best arrangement is one where they will sacrifice as much as you request (bar a minimal income threshold of national minimum wage), contribute the whole gross sum rather than attempting to trouser the employers contribution elements for themselves, and will contribute to a scheme of your own nomination rather than their own.