sipp

[pmeswani]

At the moment i pay £200 /month into my SIPP from my personal bank account. Then SIPP provider reclaim my tax back.

What is the benefit of making this payment from my company accounts as an employer pension payment?

Lower Corp. Tax for starters. Also, if you make employee contributions, you have to decide whether it comes out of your Dividend or PAYE allocation, which may incur Tax of some sort. So making Employer contribs will save on Corp Tax, N.I., Income Tax and any other tax.

As it stands, I pay about £200 a month into my Sipp from my personal bank acount, and I make an occassional employer payment on top. I could have put another £2.5k into my sipp recently, but decided to take it as a dividends and pay off some outstanding bills (and incurred some tax).