DIY Pensions for a Limited Company?

[DallasDad]

@tinfed
Depending on your age you probably have plenty of time to get this right. Talk to an IFA for advice not a bunch of IT contractors. You don't have to follow that advice nor maintain a long term or potentially costly relationship with that IFA.

Right now a lot of the popular funds e.g Vanguard are languishing following last years large post brexit gains so you should be concentrating on getting the pension vehicle right initially

[DallasDad]

Ps
Did you pick that fund out of a hat?
Looking at Morning Star It has performed poorly against the Sector and pretty much matches the FTSE benchmark over the last 5 years or so.

The fees are cheap so it may be a safe FTSE tracker if that is what you are after though it's just not a stellar performer


Go speaketh to a financial grown up.

[Tinfed]

Thanks for your reply Dallas. I actively manage my portfolio so I want some of it to be made up of low cost tracker funds. My IFA suggested SIPPS were more expensive than standard personal pensions but this is not what I've seen in the market so I thought I'd ask here. I've found Aviva platform charges 0.4% on top of the fee the fund charges. Was wondering if anyone knows a cheaper fund supermarket?

[SueEllen]

Thanks for your reply Dallas. I actively manage my portfolio so I want some of it to be made up of low cost tracker funds. My IFA suggested SIPPS were more expensive than standard personal pensions but this is not what I've seen in the market so I thought I'd ask here. I've found Aviva platform charges 0.4% on top of the fee the fund charges. Was wondering if anyone knows a cheaper fund supermarket?

Your IFA would as they aren't getting paid if you use fund supermarket/platform.

[Fred Bloggs]

Thanks for your reply Dallas. I actively manage my portfolio so I want some of it to be made up of low cost tracker funds. My IFA suggested SIPPS were more expensive than standard personal pensions but this is not what I've seen in the market so I thought I'd ask here. I've found Aviva platform charges 0.4% on top of the fee the fund charges. Was wondering if anyone knows a cheaper fund supermarket?

For flat rate platforms I recommend either Cavendish (which is actually Fidelity platform) or Close Bros. Either will be around half the cost of the often recommended HL which charges a horrendous 0.45% on most investments. If a flat rate platform appeals, I recommend Interactive Investors. I use II and CB for me and my families ISA/SIPP portfolios.

[DallasDad]

@tinfed
I thought I had posted this here somewhere but perhaps not. Go to the langcat site and download their reports

They provide a good comparison of sipp providers and the variations in cost models.

[SeanT]

For flat rate platforms I recommend either Cavendish (which is actually Fidelity platform) or Close Bros. Either will be around half the cost of the often recommended HL which charges a horrendous 0.45% on most investments. If a flat rate platform appeals, I recommend Interactive Investors. I use II and CB for me and my families ISA/SIPP portfolios.

How do these stack up against BestInvest? Is it just the exit fee that put you off?

[softwaredever]

Mechanics of contributing to pension via limited company

Hi all,

I'm planning to contribute to my pension (held with aviva) through my limited company. Could anyone help me clarify the following?

Is it as simple as just making periodic pension transfers from my company bank account to my pension provider, and recording this in my accounts as a pension contribution (thus lowering pre-tax profits)?

Or do I need to do anything else accounting / legal wise with HMRC?

[Fred Bloggs]

Hi all,

I'm planning to contribute to my pension (held with aviva) through my limited company. Could anyone help me clarify the following?

Is it as simple as just making periodic pension transfers from my company bank account to my pension provider, and recording this in my accounts as a pension contribution (thus lowering pre-tax profits)?

Or do I need to do anything else accounting / legal wise with HMRC?

I know nothing of the Aviva scheme. I suspect almost nobody here will. You need to call them and tell them you are making employer contributions. They need to know this to prevent inadvertantly claiming tax relief. There is likely to be a box on a form to tick. No, you do not need to tell HMRC anything. The contributions will be recorded in your company accounts and you will not pay corporation tax on that money since it is an expense of running the business. There are other things to consider as well, but that will do for now. So, talk to Aviva and tell them what you plan to do. Take it from there.

[Fred Bloggs]

How do these stack up against BestInvest? Is it just the exit fee that put you off?

No need to consider them. They charge more and offer nothing special compared to my recommendations.