Reply to: Easiest company pension scheme

[IR35 Avoider]

There is another reason to avoid regular monthly direct debit. It's designed for companies that are making regular payments on behalf of employees, so your pension provider may feel they have to report you to HMRC whenever an expected payment doesn't arrive, as you might be be trying to cheat your employee out of the pension contribution they are contractually entitled to.

At least this was the case some years ago, it's possible things have changed.

Regular contributions by direct debit sometimes used to have higher fees than ad hoc single contributions, if your pension was with an insurance company.

[IR35 Avoider]

For my Youinvest SIPP contributions, I just fill in the amount and company name online (and choose the company address from a drop-down) then it generates a pdf which I print, sign and send with a cheque.

[mudskipper]

There is an advantage to this as you can choose which funds to allocate funds to and change the percentages with every payment.

And you don't need to fill the form every time, just a letter on headed paper from yourCo with the cheque.

[SueEllen]

I just filled out the stupid form, which asks company number etc. I guess I'll be doing that every month. I don't want Direct Debit as the date and amount I'm paid varies so I don't want money going out out of my control, and it means I'd have to cancel it if my income falls to zero.

Inside IR35 and/or with an umbrella and it's outside employer's NI too. 48% tax relief.

There is an advantage to this as you can choose which funds to allocate funds to and change the percentages with every payment.

[VectraMan]

You need to tell HL that it's an employer payment on company headed paper with your cheque.

I just filled out the stupid form, which asks company number etc. I guess I'll be doing that every month. I don't want Direct Debit as the date and amount I'm paid varies so I don't want money going out out of my control, and it means I'd have to cancel it if my income falls to zero.

Inside IR35 and/or with an umbrella and it's outside employer's NI too. 48% tax relief.

[syrio]

HL aren't a good choice if you have a large pension invested in funds as they charge a % of funds. You would be better off with a fixed fee broker such as Alliance Trust, Interactive Investor or Selftrade. Look on the Monevator low cost brokers article to see a comparison of charges.

HL are reputedly very good on customer service, though. No doubt because they can afford it with their charges.

[SueEllen]

Is that not the case? If I set up a SIPP with HL can MyCo pay into it and deduct those payments from CT?

Yep.

You need to tell HL that it's an employer payment on company headed paper with your cheque.

[matzie]

It may seem obvious, but I was a bit confused thinking I needed to have a company pension scheme to make employer contributions..

Is that not the case? If I set up a SIPP with HL can MyCo pay into it and deduct those payments from CT?

[SueEllen]

It may seem obvious, but I was a bit confused thinking I needed to have a company pension scheme to make employer contributions.

Signed up for an HL SIPP as suggested. I can't believe that to make an initial company contribution I needed to PRINT a FORM, fill it out, WRITE a CHEQUE, and POST it!!!! Do I really want to trust my money with somebody that hasn't noticed it's the 21st century? What do 20-somethings do? Do they even know what cheques are?

I eventually found my company cheque book. Last entry was 2011.

It's amusing as all my company cheques are to HL

[nozmeister]

Try fidelity as its all done online

[VectraMan]

It may seem obvious, but I was a bit confused thinking I needed to have a company pension scheme to make employer contributions.

Signed up for an HL SIPP as suggested. I can't believe that to make an initial company contribution I needed to PRINT a FORM, fill it out, WRITE a CHEQUE, and POST it!!!! Do I really want to trust my money with somebody that hasn't noticed it's the 21st century? What do 20-somethings do? Do they even know what cheques are?

I eventually found my company cheque book. Last entry was 2011.

[Fred Bloggs]

I can't think of anything less hassle than a HL SIPP. You do everything on line once it is setup. Dead easy.

[VectraMan]

I think the problem is the whole industry has geared up for the auto-enrolment thing and it's impossible to find anything else. Everything under business is about auto-enrolment.

[SimonMac]

Hargreaves Lansdown told me they don't have products suitable for very small companies and pointed me at Nest.

Which again is all about auto-enrolment.

Don't listen to them, just open a SIPP its what I have done, ignore the auto enroll aspect

[TheFaQQer]

I'm not asking about which is most likely to double every year, or leave me penniless, just what is the easiest and quickest way to set this up so I can make a start on not paying my fair share of tax?

I got half way through the L&G auto enrolment setup, but it started to look like it's not the thing I want. My "staging date" is October 2017; i.e. 18 months away, and it wouldn't let me enter a start date earlier than that. I don't want to wait 18 months.

Also I don't want to have to setup a regular direct debit, as it seemed to be suggesting. Ideally I want to be able to make contributions as and when I feel like it; ideally just by making an online banking payment.

I also don't want to waste hours of my life talking to an IFA, or other advisor. I've tried it, and my eyes glaze over after the first 30 seconds and end up remembering nothing of what was said.

Any suggestions?

You probably don't need to auto-enrol - I emailed them and explained that the company has directors without contracts of employment and they went away.

In terms of setting up a pension plan, I set mine up with SJP - I spent time with the guy (he also looks after my parents money and the same for my sister) going through my finances briefly, then said I wanted a pension. He said "sounds like a good idea to me, I'll send you a letter" - letter arrived, I sent a cheque to open it up and then setup a direct debit each month which I've just increased.

Not sure where you're based, but he covers a lot of the north if you want his details.