Question on paying into a SIPP from a limited company

ChequeBookGerry

Hello all,
I am a new IT contractor, with my own limited company (just for me), paying myself a small salary plus dividends, filling in a personal tax return - all in the usual manner.  I want to set up a SIPP and I read that I can contribute into a SIPP from the company, so getting the tax relief directly - no Corp Tax on the payments and no dividend tax to pay later.  All fine.  This may be a very silly question but I am slightly unclear as to the mechanics of doing that.  Do I literally just pay for the investment in my personal SIPP using the company bank account or do I have to do something like set up/register a company pension scheme or suchlike, as I can see I can do in my Quickbooks software? 
Many thanks.   

dunstonh

 Do I literally just pay for the investment in my personal SIPP using the company bank account or do I have to do something like set up/register a company pension scheme or suchlike, as I can see I can do in my Quickbooks software? 

You just make employer contributions into your individual pension.  You record on your records as a business expense.  You do not use a workplace pension or occupational scheme (you wouldn't on the latter as you dont have the scale).

Prism

You can use a SIPP and then contact the provider to set up payments directly from your business. You will likely need to fill in a form and send it back to ensure that the payments are treated correctly so that no additional tax is claimed back by the SIPP platform as like you say you are already getting the tax benefit through corporation tax reduction.

Here is an example with Youinvest 
Employer pension contributions | AJ Bell Youinvest

Marcon

The important thing is to pay directly from the company's bank account and make sure the SIPP provider knows it is a company contribution. It sounds blindingly obvious, but it's surprising how many people happily pay out of their personal account with the intention of claiming it back as an 'expense'.

ChequeBookGerry

Thanks everyone.  I have found the form on the HL website.

Nurse2047

Sorry to jump on this post however do I have to set up a new sipp or can I use an existing sipp? 

Marcon

Nurse2047 said:

Sorry to jump on this post however do I have to set up a new sipp or can I use an existing sipp? 

If your current SIPP accepts transfers from a limited company (check with them), that'll do fine.

Grumpy_chap

You need to make sure that the contributions from your Ltd Co are processed as employer contributions and not as employee contributions.

ChequeBookGerry

Nurse2047 said:

Sorry to jump on this post however do I have to set up a new sipp or can I use an existing sipp? 

Yes, the contributions are interchangeable.  I've stopped contracting so am now contributing as an individual.

Marcon

ChequeBookGerry said:

Nurse2047 said:

Sorry to jump on this post however do I have to set up a new sipp or can I use an existing sipp? 

Yes, the contributions are interchangeable.  I've stopped contracting so am now contributing as an individual.

Depends on the SIPP. Most but not all accept third party contributions. 

ComicGeek

You also have to check the mechanism for paying company contributions into a SIPP.

Interactive Investor didn't allow regular company contributions (direct debit or standing order), and organising one off payments each monthy/quarter was too much hassle with their system at the time.

In the end I chose Fidelity partly because they allow regular direct debits to be set up. 

Just something to check if you're looking to make monthly contributions of the same amount, rather than one-off payments.