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Redego Group Pension scheme: Reducing Tax & NI

Posted by Ifan | Posted in Articles, Contractor | Posted on 02-07-2010

Find out more about “salary exchange”.

Redego clients can significantly reduce the deductions made by the taxman using what is known as a ‘salary exchange’ arrangement. Payroll can transfer funds from your gross contract into the new Redego Group Pension scheme and the taxman won’t receive a penny of this money.

These transfers to the pension scheme represent a key way to ensure that you work as tax efficiently as possible through Redego.

There are no set up costs whatsoever to join the pension and because you reduce not only income tax but also employers and employees National Insurance as well, the Redego scheme is far more effective than any existing arrangements that you may have access to. The rate of deductions saved, even for basic rate taxpayers, is 38% and can be as high as 68% for those who pay the highest rate of income tax.

Joining the scheme couldn’t be easier via telephone, post or email and you can stop contributions at any time without penalties. Should you eventually leave Redego, your fund can either be left invested or you can continue to add to it via a personal investment or via a new employer. Alternatively it can be transferred out to another pension scheme.

In order to bring you this fantastic tax saving opportunity, we are working closely with ContractorFinancials who are Independent Financial Advisers with a unique understanding of the way that you work as a Freelancer. They aim to ensure that you have the knowledge to make the most of your current employment status, helping you to maximise any available tax breaks and avoid any potential pitfalls that you may face.

Pension specialist Andrew Gains explains

“As well as the substantial tax savings to be gained by diverting part of your invoice into the Redego scheme, pension funds held elsewhere can be consolidated within this single scheme and could enjoy potentially far better performance and lower running costs. As independent advisers we can compare schemes for you and we ensure that the new pension scheme provider will levy no charges for accepting such transfers”

Contact Andrew Gains today on 0845 062 8888 or email redego@contractorfinancials.com for further details.