Contractor pensions..

[Contreras]

I have never understood why Hargreaves Lansdown are so popular, as they are more expensive than several alternatives, once your balance is significant.

You will see that Hargreaves Lansdowne can be expensive, although their customer service is supposedly very good.

This ^

I'm a passive investor. I've chopped and changed brokers a few times due to poor service or web platform revamps that went pants. Finally this year I decided to try HL and so far very impressed compared to the other (4) so called "low cost" brokers. In fact HL are similarly low cost if you only do ETFs/shares in an ISA, it's funds and the SIPP that attract charges.

My SIPP is with youinvest and they also charge an annual fee, the HL platform is better IMHO but I prefer to keep the nest eggs scattered in multiple baskets so to speak.

[jbg]

You don't need an IFA. Just open an account with a SIPP provider and make employer contributions.

I would like to ask about this. I have a ltd company and would like to make contributions to a SIPP, direct from the company (within the 40K limit). I have already established that auto enrollment will not apply.

My accountant is trying to get me to use his favourite IFA (I am not keen). He also said I could make contributions to a SIPP but it would have to be "a company scheme".

Is my accountant missing the point? I see many folk here are making contributions to SIPPs, direct from their ltd companies. Is it really as simple as opening a SIPP of one's choosing and making payments from the company account or are there any constraints/procedural formalities to consider?

[Contreras]

I would like to ask about this. I have a ltd company and would like to make contributions to a SIPP, direct from the company (within the 40K limit). I have already established that auto enrollment will not apply.

My accountant is trying to get me to use his favourite IFA (I am not keen). He also said I could make contributions to a SIPP but it would have to be "a company scheme".

Is my accountant missing the point? I see many folk here are making contributions to SIPPs, direct from their ltd companies.

Ask him what exactly does he mean by "a company scheme". That's probably how the contributions will be recorded in the company accounts. The SIPP is opened by and individual to you. I think there used to be separate schemes referred to as "director's pension" but that distinction is long gone years ago.

Is it really as simple as opening a SIPP of one's choosing and making payments from the company account or are there any constraints/procedural formalities to consider?

If you want it to be that simple, yes. You can of course take advice from an IFA too if you want. There's no specific notification to HMRC if that's what you mean.

Procedure for making payments will depend on the SIPP provider. It should include a declaration whether the contribution is personal or company. For company contributions it must be direct from the company account - cheque/DD/transfer is OK but which of these is accepted again depends on the SIPP provider.

[SimonMac]

I use HL because their platform is excellent, customer service is good and as their fees are £200 a year this works out very competitive, transaction fees are a little steep (£11.95 a time) but seeing as I don't make many trades its not a big deal and any dividends reinvested do not attract a fee.

[syrio]

Is it really as simple as opening a SIPP of one's choosing and making payments from the company account or are there any constraints/procedural formalities to consider?

Yes, it is that simple.

Obviously check with your SIPP provider that you can make company contributions to the SIPP, but they are almost certainly all going to say yes. They will have to know if you are making company contributions so that they don't attempt to reclaim the tax for you.

[jbg]

Ask him what exactly does he mean by "a company scheme". That's probably how the contributions will be recorded in the company accounts. The SIPP is opened by and individual to you. I think there used to be separate schemes referred to as "director's pension" but that distinction is long gone years ago.



If you want it to be that simple, yes. You can of course take advice from an IFA too if you want. There's no specific notification to HMRC if that's what you mean.

Procedure for making payments will depend on the SIPP provider. It should include a declaration whether the contribution is personal or company. For company contributions it must be direct from the company account - cheque/DD/transfer is OK but which of these is accepted again depends on the SIPP provider.

Yes - I will ask my accountant what he means by "a company scheme". He may be thinking of auto enrollment (although we had just established that it doesn't apply for my company).

The SIPP providers I have looked at all have specific arrangements for employer contributions.

Thanks - your explanation confirms my understanding.

[jbg]

Yes, it is that simple.

Obviously check with your SIPP provider that you can make company contributions to the SIPP, but they are almost certainly all going to say yes. They will have to know if you are making company contributions so that they don't attempt to reclaim the tax for you.

Thanks. I have seen that the SIPP providers I am looking at all have arrangements for employer contributions, so it all looks fairly straightforward.