Husband and Wife, Directors and SIPPS

segovia

From a previous post in another thread, I now think the transferring our current personal pensions into a SIPP is inevitable.

I am assuming that my wife and I will need to set up our own individual SIPP's. The choice and charges are a minefield, the decision who to choose is not made yet but would it be unusual to have two different SIPP providers i.e. one each?

We will continue to make personal contributions and lump sums from the LTD company of which we are both Directors into a / the SIPPS.

J

lisyloo

Why 2 different providers?
I can see the diversity advantages of having different funds/portfolios, but for admin isn’t it easier to have the same provider?

What’s the possible advantage of having 2?

Sibbers123

You can't make 'personal' contributions from a limited company. You will make employer contributions.

There is a MASSIVE difference and if you're not familiar with it, I would start here before you worry about which SIPP to use as this will cause a nightmare further down the road.

segovia

lisyloo wrote: »

Why 2 different providers?
I can see the diversity advantages of having different funds/portfolios, but for admin isn’t it easier to have the same provider?

What’s the possible advantage of having 2?

I agree but selecting one is a minefield and being able to compare one against the other in real-time does sound appealing.

segovia

Sibbers123 wrote: »

You can't make 'personal' contributions from a limited company. You will make employer contributions.

There is a MASSIVE difference and if you're not familiar with it, I would start here before you worry about which SIPP to use as this will cause a nightmare further down the road.

Yes I know, we make employer contributions from our Ltd Company and we make personal contributions from our rental income that has nothing to do with our Ltd Company

Dazed_and_confused

As rental income doesn't usually qualify as relevant earnings for pension contribution purposes do you actually have sufficient earnings to make the personal contributions?

Your other thread would suggest these are well in excess of the most common directors salary.

segovia

Dazed_and_confused wrote: »

As rental income doesn't usually qualify as relevant earnings for pension contribution purposes do you actually have sufficient earnings to make the personal contributions?

Your other thread would suggest these are well in excess of the most common directors salary.

Yes, we take a salary from the Ltd company and my wife also works so the personal contributions are aligned to those incomes. It's all audited and validated by our accountants who do are personal and Ltd annual accounts.

kidmugsy

If you're happy with using two providers I would in your shoes split the pension for each of you across the two. You'd end up with four different pensions but much improved defence against provider default, IT calamities, and so forth.

Linton

We use different providers for his and hers SIPPs/ISAs to provide some protection against IT problems. However I see no point in splitting both pensions over multiple platforms. It causes too much hassle in managing the whole lot as a single portfolio. Though if you each had a SIPP and an S&S ISa you could have his SIPP and her ISA on one platform and the reverse on the other.


Even if you have both his & hers accounts on the same platform it doesnt provide any real benefit over using 2 as each SIPP or ISA has to be managed separately and you cannot transfer money from one to the other.

dunstonh

The choice and charges are a minefield, the decision who to choose is not made yet but would it be unusual to have two different SIPP providers i.e. one each?

If you decide provider A is the best option, then why would it not be best for both of you?

There are potential scenarios it could happen. However, is there anything you have identified that it would be in your case?

We will continue to make personal contributions and lump sums from the LTD company of which we are both Directors into a / the SIPPS.

Why would you make personal contributions?

Yes I know, we make employer contributions from our Ltd Company and we make personal contributions from our rental income that has nothing to do with our Ltd Company

Draw less from the limited company as dividends (assuming you draw enough salary to qualify for NI).

segovia

dunstonh wrote: »

If you decide provider A is the best option, then why would it not be best for both of you?

There are potential scenarios it could happen. However, is there anything you have identified that it would be in your case?



Why would you make personal contributions?



Draw less from the limited company as dividends (assuming you draw enough salary to qualify for NI).

Personal contributions are made to maximise our personal tax benefits, my wife gets 20% added to her personal contributions and I get the relief when I submit my Tax return.

Dividends are already low so it keeps in the lower tax bracket.