Reply to: SIPP fees - legitimate expense?

[WTFH]

Self invested refers to where the money is invested, not where it comes from. It's not just my accountant who advised I could make employer contributions, but my IFA and Hargreaves Landsdown:

Employer Contributions and Tax Relief | Hargreaves Lansdown

Good point, I stand corrected. I reckon the OP should take advice from his accountant.

[FrontEnder]

A SIPP is a Self Invested Personal Pension.
The words "Self Invested" would mean you should not be paying them out of your limited company, but paying them yourself.
If your accountant is saying you can pay it out of your Ltd, then I'd suggest changing accountants. (But I suspect that if your accountant was saying you can pay it out of your Ltd, then you wouldn't be asking on here)

Self invested refers to where the money is invested, not where it comes from. It's not just my accountant who advised I could make employer contributions, but my IFA and Hargreaves Landsdown:

Employer Contributions and Tax Relief | Hargreaves Lansdown

[WTFH]

III charge a yearly SIPP fee and a quarterly admin fee - about 196 quid a year in total.

For those who use III (or any other provider that has such fees) do you pay either/both/none of these fees from your Ltd or out of your own pocket?

Cheers
Jamie

A SIPP is a Self Invested Personal Pension.
The words "Self Invested" would mean you should not be paying them out of your limited company, but paying them yourself.
If your accountant is saying you can pay it out of your Ltd, then I'd suggest changing accountants. (But I suspect that if your accountant was saying you can pay it out of your Ltd, then you wouldn't be asking on here)

[WordIsBond]

The old adage - if you don't have anything nice or constructive to say, don't say anything at all.

This is a forum about business, not mumsnet. And it is the section dealing with accounting and tax, not an "all opinions are valid" forum. Sure, there are things that are open to debate. But if you want affirmation and everyone sitting around a campfire holding hands, this probably isn't the right place.

That said, in this case it is hard for me to see any substantive difference between a business funding the pension itself and funding the pension fee. Both are being done to provide a tax-protected benefit to staff.

But it's the kind of thing that Hector might feel he can challenge if he's in a bad mood, so why mess with it? Especially if you have anything else, like IR35, you don't want them investigating (with their interpretation). Your tax savings is less than fifty quid if YourCo pays it, right? Why do anything that the tax man might think is questionable, for that amount? When they come looking at any big issues, I don't want them to find a bunch of small things that make it look like I'm just taking the mick. I want my accounts to look very clean.

If you want the tax savings, pay it out of the pension pot and increase your pension contributions. Sorted.

[rectifier]

The reason you are being taken to task is you are being asked to be spoonfed.

If the cost is a personal one you pay it if it is a business one then the company pays it.

If you aren't sure and you have looked at the government website for clarification using Google to find the relevant pages, then ask your accountant.

In regards to my personal SIPP, which my company contributes to, NorthernLadyUK has answered what happens.

I disagree that I was asking to be sppon-fed - I was asking for opinions which I may take into account when making up my own mind, because I don't personally think this is black and white. I've been contracting for 15 years so I am aware of the shades of grey that permeate many things to do with accounting and tax.

Even if I was asking to be spoon-fed, I don't understand why people here are just so eager to jump on people and be nasty. I suspect there are many lurkers out there who are put off asking valid questions by the aggression that comes back to them unless they pass some sort of unknowable test about the type of posts that are acceptable.

The old adage - if you don't have anything nice or constructive to say, don't say anything at all.

[SueEllen]

I'm not mixing any issues - I just asked for opinions that's all.

I find this forum really quite dysfunctional. It could be a really supportive resource, but anytime anyone opens a discussion that isn't to the taste of the usual suspects, you just get grotty answers.

Discussion and supportiveness is surely a nicer road to be on than one-upmanship and points scoring I would have thought.

The reason you are being taken to task is you are being asked to be spoonfed.

If the cost is a personal one you pay it if it is a business one then the company pays it.

If you aren't sure and you have looked at the government website for clarification using Google to find the relevant pages, then ask your accountant.

In regards to my personal SIPP, which my company contributes to, NorthernLadyUK has answered what happens.

[northernladuk]

You may make a good point but oh, the irony of the point coming from someone that offers absolutely nothing and creates more off topic noise by complaining about the noise.

It doesn't??

[Fred Bloggs]

you just have to learn how to filter out the noise - putting nluk on ignore would be a good start

Sadly, it doesn't work for quotes.

[northernladuk]

you just have to learn how to filter out the noise - putting nluk on ignore would be a good start

You may make a good point but oh, the irony of the point coming from someone that offers absolutely nothing and creates more off topic noise by complaining about the noise.

[northernladuk]

I'm not mixing any issues - I just asked for opinions that's all.

I find this forum really quite dysfunctional. It could be a really supportive resource, but anytime anyone opens a discussion that isn't to the taste of the usual suspects, you just get grotty answers.

Discussion and supportiveness is surely a nicer road to be on than one-upmanship and points scoring I would have thought.

I can't really argue that point and yes am pretty guilty of that I admit but in this case you have asked a specific question. The title alone is just a yes no answer. You then ask a question in the body of the post which is answered by basic wholly and exclusively rules. There isn't really much discussion. It's not easy to see where someone wants an answer to a question asked or one where they've asked a question but really want a discussion.

You mentioned them being allowable in an auto-enrolment but again it's back to the wholly and exclusively or personal/business question so looks confusing to me as it's not related to the direct question about SIPPS so was thinking there is some confusion there.

Sorry for not giving you want you wanted. I certainly think you got what you asked for, and I mean the answer to your question. If you want a discussion I'd have a look at your introduction to the thread.. sorry.

[pr1]

I find this forum really quite dysfunctional. It could be a really supportive resource, but anytime anyone opens a discussion that isn't to the taste of the usual suspects, you just get grotty answers.

you just have to learn how to filter out the noise - putting nluk on ignore would be a good start

[rectifier]

I'm assuming your are a single director LTD so you are exempt from auto enrollment. I think you are mixing a few different issues here.

I'm not mixing any issues - I just asked for opinions that's all.

I find this forum really quite dysfunctional. It could be a really supportive resource, but anytime anyone opens a discussion that isn't to the taste of the usual suspects, you just get grotty answers.

Discussion and supportiveness is surely a nicer road to be on than one-upmanship and points scoring I would have thought.

[northernladuk]

I'm assuming your are a single director LTD so you are exempt from auto enrollment. I think you are mixing a few different issues here.

[northernladyuk]

III charge a yearly SIPP fee and a quarterly admin fee - about 196 quid a year in total.

For those who use III (or any other provider that has such fees) do you pay either/both/none of these fees from your Ltd or out of your own pocket?

Cheers
Jamie

The third option is that it is paid by your pension fund.

[northernladuk]

Now I know for sure that that's not true, not for everyone anyway.

I'm interested because I imagine if you run a pension scheme under auto-enrollment then the costs of that are allowable.

As I say, I'm interested in what other people actually do, not what you think other people *should* do.

I'm trying to get you to think about the difference between a personal pension plan and a work place pension plan and what are legitimate expenses but I appear to be failing.

Surely you are interested in what you should be doing? If other people are doing something different that's their problem and they can pick up the pieces when it goes wrong.