Another SIPP question

[Ashwin2007]

I have set up SIPP, with pension contribution paid directly from the company account every month. The SIPP has been set up as individual SIPP, but the pension provider has advised that as per the current pension rules, the company can pay directly into individual SIPP. I have been advised that the Group SIPP can be set up only for company with 5 employees or more.

I see that in the SIPP transactions it showing as "regular saver" paid into my SIPP account. I was expecting this to be showing as "Employer Contribution".

My worry is, this should not be treated as my personal contribution, rather employer contribution, deductible as company expensess.

[jmo21]

close it down then.

Hardgreaves Lansdown will let you open a SIPP, contribute from your company, with no restrictions like that. I'm sure other providers will too.

[jjdarg]

close it down then.

Hardgreaves Lansdown will let you open a SIPP, contribute from your company, with no restrictions like that. I'm sure other providers will too.

+1, but they will ask that you e-mail them on the day to inform them that it is an employer contribution coming from the company accounts.

[ASB]

I have set up SIPP, with pension contribution paid directly from the company account every month. The SIPP has been set up as individual SIPP, but the pension provider has advised that as per the current pension rules, the company can pay directly into individual SIPP. I have been advised that the Group SIPP can be set up only for company with 5 employees or more.

I see that in the SIPP transactions it showing as "regular saver" paid into my SIPP account. I was expecting this to be showing as "Employer Contribution".

My worry is, this should not be treated as my personal contribution, rather employer contribution, deductible as company expensess.

I appreciate your concern.

my wild guess would be that the provider has a better idea of how it is treated than me.

fwiw I have never seen the words you would find reassuring on any pension I have had emploer contributions paid into with the exception of a scottishcwidows one.

[SueEllen]

I have set up SIPP, with pension contribution paid directly from the company account every month. The SIPP has been set up as individual SIPP, but the pension provider has advised that as per the current pension rules, the company can pay directly into individual SIPP. I have been advised that the Group SIPP can be set up only for company with 5 employees or more.

I see that in the SIPP transactions it showing as "regular saver" paid into my SIPP account. I was expecting this to be showing as "Employer Contribution".

My worry is, this should not be treated as my personal contribution, rather employer contribution, deductible as company expensess.

Why would it?

As long as the provider knows it's not a personal contribution they can describe it how they like.

You just need to keep a record to show what your company paid in so your accountant can work out your corporation tax at the end of the company year.

[Maslins]

+1, but they will ask that you e-mail them on the day to inform them that it is an employer contribution coming from the company accounts.

I don't have to do this? Hargreaves Lansdown did seem slightly limited on the options for putting employer contributions into the scheme...eg I couldn't just make random one off lumps by internet banking like I could for personal. Seemed to be either cheque, or a monthly direct debit (I went for the latter). Certainly not emailing them on a monthly basis to advise each one is employers.

Re the accounts/CT side of things, I don't think you've got too much concern. I would however keep an eye on the pension itself to double check that the SIPP isn't reclaiming basic rate personal tax on those contributions. If it is I'd suggest you get them to stop it ASAP and rectify any historic payments in.

[jjdarg]

I don't have to do this? Hargreaves Lansdown did seem slightly limited on the options for putting employer contributions into the scheme...eg I couldn't just make random one off lumps by internet banking like I could for personal. Seemed to be either cheque, or a monthly direct debit (I went for the latter). Certainly not emailing them on a monthly basis to advise each one is employers.

For the DD, you don't have to. For odd bits, yes. They provided me with internet banking info, too. Maybe send them a message from your account. That's how I did it.