I'm about to start paying into a SIPP from my company. However initially I want to set it up with a decent sized personal contribution (mainly so I can set it all up online using a debit card and want to buy a few investments quickly), are there any disadvantages to this? Would it be better to only pay in via my company. I'm sure I will still get tax relief on the amount when I file my return?
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Paying contributions from the company, in general, means it is deemed an expense in the company and corporation tax relief is obtained. Paying contributions personally means you contribute at "Net" and the government provides the tax to make it a gross contribution. You won't get personal tax relief if the company makes the contributions.
You will need to be aware of the contribution limits set for company contributions both currently and in the new tax year. You could ask an IFA for his opinion on where using a debit card etc is a good choice. -
Be patient and pay it direct out of your Co, it makes sense tax and NI wise as mentioned by the previous poster. Mine was setup in a matter of days and I was able to trade within a week I think. If you are confident enough to trade in shares yourself than have a look at Sippdeal. There are no ongoing management fees and trades are £9.95, even for large trades, all the other options I looked at had ongoing management fees ( 0.5% for directly held shares with Hargreaves Lansdown, and more for others ) and also would charge you for trades on a %age basis ( 1% with HL, so £50 for a £5K trade ). Ove the lifetime of a pension that 0.5% ( or more ) will make a difference ! You could buy managed funds but they charge 1.5% plus, again over a pension lifetime that will make a big difference. No guarantee that Sippdeal won't up their fees in the future but the corresponding Isa has had no management fees for 8yrs+.Comment
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