umbrella salary sacrifice to sipp

[fireseeker]

My umbrella is Danbro, they pay salary sacrifice contribs to corpad.co.uk only then I have to instruct corpad to transfer to my own SIPP. Vanguard don’t accept employer contributions so I need a new SIPP. I already have James Hay
SIPP but been looking to move away due to their fees and admin issues. I might stay though if it solves my problem.

Anyone using interactive investor for their sipp to take umbrella salary sacrifice, or James Hay?

[Fred Bloggs]

My umbrella is Danbro, they pay salary sacrifice contribs to corpad.co.uk only then I have to instruct corpad to transfer to my own SIPP. Vanguard don’t accept employer contributions so I need a new SIPP. I already have James Hay
SIPP but been looking to move away due to their fees and admin issues. I might stay though if it solves my problem.

Anyone using interactive investor for their sipp to take umbrella salary sacrifice, or James Hay?

Yes, I use II and often sent money there directly from the Ltd Co bank account.

I recommend them as a flat fee platform. Should you choose, I can refer you and you get one year free of platform fee. PM me if you wish. Thanks.

For a per cent fee platform I recommend AJ Bell.

[Smartie]

Danbro pay into my II SIPP.
It took quite a bit of effort to get it running smoothly but it's now working and I assume it will be a lot easier for you now the process is in place.
Note that payments are basically two months in arrears e.g. main payment for Jan is around Feb 10th but the pension payment for Jan won't be transferred to your SIPP until around March 23rd.
Because of this, if you're planning to max out your contributions, check carefully how many payments you'll get before the end of the tax year and set the percentage accordingly. Danbro forgot that I'd only get 10 payments, not 12 and I had to correct the pension payment amount for them.

Corpad will send you a monthly email with the amount to go into the SIPP and transfer the money to II.
You will need to create a manual monthly form and send it to II to get the money registered against your account.
Check that they aren't leaving any of the money (including the basic employer/employee pension contributions) in the Corpad scheme itself and are transferring the lot to II every month.

II are low cost and generally acceptable service. Happy to refer you if needed.

[fireseeker]

Fred Bloggs Cheers. Looks a good deal for both of us. I save £12.99 per month for a year on sipp fee, though don’t get free trade per month - though still a better deal than the new customer 6 months free sipp (with free monthly trade). If I decide to go with ii I’ll come back for a referral.

[fireseeker]

Danbro pay into my II SIPP.
It took quite a bit of effort to get it running smoothly but it's now working and I assume it will be a lot easier for you now the process is in place.
Note that payments are basically two months in arrears e.g. main payment for Jan is around Feb 10th but the pension payment for Jan won't be transferred to your SIPP until around March 23rd.
Because of this, if you're planning to max out your contributions, check carefully how many payments you'll get before the end of the tax year and set the percentage accordingly. Danbro forgot that I'd only get 10 payments, not 12 and I had to correct the pension payment amount for them.

Corpad will send you a monthly email with the amount to go into the SIPP and transfer the money to II.
You will need to create a manual monthly form and send it to II to get the money registered against your account.
Check that they aren't leaving any of the money (including the basic employer/employee pension contributions) in the Corpad scheme itself and are transferring the lot to II every month.

II are low cost and generally acceptable service. Happy to refer you if needed.

Smartie Thanks for this, looks like your setup is what I'm going to be working through.

Just unsure about why the transfer from corpad to ii, or any other SIPP, would be classed as employer contribution rather than a transfer in. My understanding is that corpad is an investment platform providing the pension wrapper (though with a very restricted list of funds - no global equity tracker which isn't overweight to UK, for example) and the payment from danbro to corpad is the employer contribution, but from then on I don't see why the destination SIPP cares whether the original source of funds was employer or employee. Do you know why this is? Emailing corpad, it seems that some SIPP companies have a problem accepting the funds and other's don't. I know that an employer workplace pension often won't accept an alternative employer's contributions, but will accept personal contributions but here again, why would the destination provider care if it was a transfer?

I'm comparing to the Scottish Widows workplace pension I had with a perm role which I could periodically instruct to transfer in to my James Hay SIPP. James Hay admin has got gradually worse over the last two years and they're expensive, so don't see I'll be staying with them for much longer.

Thanks!

[Smartie]

Smartie Thanks for this, looks like your setup is what I'm going to be working through.

Just unsure about why the transfer from corpad to ii, or any other SIPP, would be classed as employer contribution rather than a transfer in. My understanding is that corpad is an investment platform providing the pension wrapper (though with a very restricted list of funds - no global equity tracker which isn't overweight to UK, for example) and the payment from danbro to corpad is the employer contribution, but from then on I don't see why the destination SIPP cares whether the original source of funds was employer or employee. Do you know why this is? Emailing corpad, it seems that some SIPP companies have a problem accepting the funds and other's don't. I know that an employer workplace pension often won't accept an alternative employer's contributions, but will accept personal contributions but here again, why would the destination provider care if it was a transfer?

I'm comparing to the Scottish Widows workplace pension I had with a perm role which I could periodically instruct to transfer in to my James Hay SIPP. James Hay admin has got gradually worse over the last two years and they're expensive, so don't see I'll be staying with them for much longer.

Thanks!

It's probably related to money laundering concerns.

Ideally, the whole payment to the SIPP would be an employer payment from Danbro directly.
The Corpad pension scheme is, I assume, for the usual contract staff who will pay minimum into it and Danbro need some kind of mandatory scheme.

For us, there will be an employer basic contribution, employee basic contribution and an additional (large) elective contribution. These all go into Corpad and are transferred out from there to II. It's still an employer contribution though and needs to be so II don't try and claim tax back on it. Employee contributions need tax reclaimed at basic rate by II and then by you on a tax return for higher rate tax paid.
Previously Corpad were retaining the basic funds and only transferring the elective amount to II. That's now fixed.
A transfer in from another pension scheme is a big deal and can take months - you don't want that.