Can I contribute to SIPP via umbrella company?

[Lance]

+ Tilney Bestinvest

Need to complete a form each month to confirm it's an employers contribution, but this form can be sent by email.

II is the same. Adhoc payments need a form completing.
hargreaves landsdown don’t need a form, just do the transfer.

[ASB]

II is the same. Adhoc payments need a form completing.
hargreaves landsdown don’t need a form, just do the transfer.

But how do HL then know that it is an employer contribution and not a personal one ? It matters since the former gets no tax relief (a gross contribition is paid) the latter get tax relief automatically applied (a net contribution is paid)

[lucyclarityumbrella]

If it's been taken via salary sacrifice via the payroll then there is no additional tax relief once it hits the pension.

[lucyclarityumbrella]

Lucy would probably disagree but I think NEST's fees are completely insane (1.8% of every contribution).

Disagree with you...... never
Contribution charges are high but annual management charges are low in comparison to some at 0.3%

[vwdan]

But how do HL then know that it is an employer contribution and not a personal one ? It matters since the former gets no tax relief (a gross contribition is paid) the latter get tax relief automatically applied (a net contribution is paid)

Remember, there's no risk to HL taking it as an employer contribution - the risk is people trying to claim that it's a personal contribution.

It's no different to paying from your Ltd Co bank account, or via debit card. You give them the money, what you give goes into the account - job done, no tax to worry about.

[ASB]

Remember, there's no risk to HL taking it as an employer contribution - the risk is people trying to claim that it's a personal contribution.

It's no different to paying from your Ltd Co bank account, or via debit card. You give them the money, what you give goes into the account - job done, no tax to worry about.

But I don't think it works that way. If "you" make a contribution "you" don't claim tax relief relief it.

https://www.gov.uk/tax-on-your-priva...ion-tax-relief
Thus the provider has to know for each and every contribution whether it is an employer contribution (already relieved).or an employee one.

[vwdan]

But I don't think it works that way. If "you" make a contribution "you" don't claim tax relief relief it.

https://www.gov.uk/tax-on-your-priva...ion-tax-relief
Thus the provider has to know for each and every contribution whether it is an employer contribution (already relieved).or an employee one.

No, the provider needs to know if it's an employee contribution. If it's an employer contribution they don't care - and that's how HL will treat "random" deposits

Either way, it's how it worked. I gave PayStream the HL details, and every month I get a letter from HL to say they've received some money to my SIPP

[ASB]

Well yes. so they "know" it is an employer contribution because they assume it is.

In other words they need notifying of every incoming payment that isn't.

They do have a form which is intended to be used, or phone.

I don't doubt it worked for you, but some caution is needed when mixing contribution types.

https://www.hl.co.uk/pensions/contri...employer/forms

[vwdan]

Well yes. so they "know" it is an employer contribution because they assume it is.

In other words they need notifying of every incoming payment that isn't.

They do have a form which is intended to be used, or phone.

Yes, and ref a form - I spoke to them specifically about the scenario. They didn't request anybody fill any forms - they told me specifically pass over bank details and my reference info to the brolly and that was that. Maybe Paystream did something further behind the scenes - can't comment on that, of course.

[ASB]

Yes, and ref a form - I spoke to them specifically about the scenario. They didn't request anybody fill any forms - they told me specifically pass over bank details and my reference info to the brolly and that was that. Maybe Paystream did something further behind the scenes - can't comment on that, of course.

I imagine they said "anything coning from this account is an employer contribution".

The reason for labouring the point: A good friend was making employer contributions of a regular amount. One year he made a substantial one off payment towards the end of year.

It turned out - some months later - that it had been treated as a personal contribution and BR tax relief added.

This caused quite a few issues.