SIPP Contributions – Personal vs Company Account

mBanners

I run my own business as a limited company and have just set up a SIPP.

In terms of making monthly ongoing contributions – as I understand it – I can either pay via my personal account and gain tax relief (in effect adding 25% to each contribution), or pay from the business account and claim tax relief for the amount of the contributions from the company's Corporation Tax bill.

So, as the money in both my personal and company bank accounts is mine in effect, which one is the best and most tax efficient to use for monthly contributions to the SIPP?

Thanks in advance.

TheTracker

Company.
- Avoids NI
- Allows you to contribute more than your salary.

Your_Hero

Depends on a number of factors, like what level of income you pay yourself, your plans for the company money, auto-enrolment (if applicable). They are both just as tax-efficient.

Remember company contributions, as with any tax-deductible expenses, need to meet the rule of "wholly and exclusively" for business purposes otherwise it can theoretically be challenged by HMRC.