SIPP question

[cinek]

I'm thinking about opening a SIPP as I don't have one. I'm currently outside of IR35. Will it be more efficient to invest from my personal account after getting paid or straight from the business account?

[Fred Bloggs]

Generally, the latter. For salary funded SIPP, NIC's cannot be reclaimed.

[adubya]

Make company contributions into the SIPP. £40k / year limit and is an allowable business expense so payable before corporation tax is applied.

No brainer for me.

[Hobosapien]

Make company contributions into the SIPP. £40k / year limit and is an allowable business expense so payable before corporation tax is applied.

No brainer for me.

That's good for those of us without a brain who will be trawling all the various info on this site. Been thinking of doing this for a while, but been wary due to the potential rule changes in future that allow the government to 'steal' the pot one way or another.

With the new divi tax it makes even more sense to do this rather than try extracting the cash from the ltd first before investing for personal reasons. Though all that may change over the coming weeks and months now May and her new chancellor and in place.

Is there a pensions for contractors dummy's guide on this site we can use as a starting point rather than the dreaded search?

[Fred Bloggs]

That's good for those of us without a brain who will be trawling all the various info on this site. Been thinking of doing this for a while, but been wary due to the potential rule changes in future that allow the government to 'steal' the pot one way or another.

With the new divi tax it makes even more sense to do this rather than try extracting the cash from the ltd first before investing for personal reasons. Though all that may change over the coming weeks and months now May and her new chancellor and in place.

Is there a pensions for contractors dummy's guide on this site we can use as a starting point rather than the dreaded search?

TBH, a pensions for contracting dummies would be pretty short in my opinion. Pensions are complicated things but setting up and running a MyCo funded SIPP is very, very simple and straightforward.

[missinggreenfields]

If you have IPSE membership, the pension plan available there seems to be very good value in terms of fees.

[Fred Bloggs]

If you have IPSE membership, the pension plan available there seems to be very good value in terms of fees.

Sorry, no it isn't. You need to do your research properly then you'll understand that why the IPSE offering is in my opinion a very poor option.

[missinggreenfields]

Sorry, no it isn't. You need to do your research properly then you'll understand that why the IPSE offering is in my opinion a very poor option.

Curious. My IFA suggested that he couldn't match or beat the charges on offer, and a different IFA told a friend of mine a similar line. Care to share some detail on why it's a very poor option compared with others out there?

[Lance]

I'm thinking about opening a SIPP as I don't have one. I'm currently outside of IR35. Will it be more efficient to invest from my personal account after getting paid or straight from the business account?

For what it's worth I wouldn't bother with a SIPP. Normal pension, in managed funds with the lowest possible management cost and no trail commission.
Unless you are going to buy a house (or other business) with it a SIPP doesn't make that much sense IMO. Better off concentrating on maximising your revenue doing what you know and leave financials to someone who knows that.

[Hobosapien]

If you have IPSE membership, the pension plan available there seems to be very good value in terms of fees.

Makes sense. I have car breakdown insurance via my bank account add-on, accidental life damage via my phone contract, so makes sense to get my pension plan from the milkman. IPSE are milkers aren't they?

For what it's worth I wouldn't bother with a SIPP. Normal pension, in managed funds with the lowest possible management cost and no trail commission.
Unless you are going to buy a house (or other business) with it a SIPP doesn't make that much sense IMO. Better off concentrating on maximising your revenue doing what you know and leave financials to someone who knows that.

So we do need a dummy's guide.