Which SIPP allows IR35 umbrella employer payment gross? (Vanguard & Interactive Investor don't)

veryfastguy

Just opened a Vanguard SIPP & paid in something from savings to use up allowance this tax year. Vanguard will apply for 25% tax & I'll claim back the rest in my SA which means I'll have the tax back in about 3 months. I want my employer to pay into my SIPP after opting out of their scheme since it's worthless because as an IR35 umbrella I pay any "employer" pension costs anyway. This would give me the tax back quicker than if I personally pay into the SIPP since they'd do it gross. But Vanguard say they won't accept payments from companies unless they are controlled by me (ie as sole Director). So I thought about moving to Interactive Investor but they only do it via a Direct Debit which I can't see my umbrella company agreeing to do.
Are there any cheap SIPPs that accept direct bank transfers from employers? If it's just the expensive ones that do it, can anyone work out how much more is worth paying in fees to get the tax back quicker if I'm planning to pay in the full £40k allowance next year & assuming 5% return on investments?
ie what's the net benefit of having the tax invested immediately throughout the year rather than me paying net & Vanguard waiting 8 weeks to claim the 25% & waiting 15months to retropectively claim the remaining 15% via SA.

Dazed_and_C0nfused

I want my employer to pay into my SIPP after opting out of their scheme

There is no pension tax relief on employer contributions.

Your figures are are out of kilter, for an employee contribution the pension company adds 25%, which is 20% of the gross contribution.

So the higher rate relief, if sufficient higher rate tax has been paid, is 20%, not 15%.

Gary1984

I don't know the answer to your question but thought the bigger advantage of the employer contribution would be savings on the national insurance, which for IR35 will obviously be quite chunky.

Maybe ask over at https://forums.contractoruk.com/umbrella-companies/
But be warned, they can be a caustic bunch over there.

Have you checked with your umbrella whether or not they'd do a direct debit. I'd be surprised if they couldn't facilitate regular pension contributions. Maybe shop around for a new brolly instead.

AJ Bell appear to accept bank transfers but there's some form filling required:

https://www.youinvest.co.uk/faq/can-my-employer-contribute-my-sipp

LHW99

II take payments from a limited company (which I assume the umbrella company is?) into a personal SIPP. You download their form for contributions, and section 2 is for employer contributions by lump sum or DD. You have to send a new form for each lump sum payment, possibly not if its DD but you would have to check, as I've never set one up although the lump sums direct from a company account worked OK.

DavidT67

Most broker SIPPs can only accept Gross Ltd. Co. pension contributions when it's a company of which you are a controlling director.

When working via an Umbrella company, you are a mere employee and will need to make pension contributions, ideally via salary sacrifice, to the Umbrella's nominated workplace pension scheme, typically Nest or Scottish Widows, (choosen as they have no employer costs. )

If you have free choice of Umbrella co., then you might find one prepared to do the admin to send pension contributions to specific SIPPs for specific employees, but that will properly come with higher admin fees. 

deedee71

I only know of two brollies which allow pension contributions to Stakeholder pensions, I'm not sure about SIPPs.  They are NASA and Sapphire.  They both charge an extra fee, around £5 per week on top of their usual fee.  Parasol might do it also.

cr0

Was also looking for an Umbrella that would pay into my chosen SIPP company. JSA Umbrella allow it and are now advertising that fact. They do monthly bank transfers. 
Not all pension companies are into it though, which seems strange as I'd like to invest the full £40k. Aegon Scottish Equitable said no.
Anyway, no loss to me as I then looked at an Interactive Investors SIPP which has lower charges and a huge number of investments which which to place the funds. 

TVAS

First of all it's not an IR35 umbrella it is just an umbrella.  

Veryfast and CRO why not  contact Steve Webb and LCP and tell him. Contact your MP. It is utterly ridiculous that you have to endure the umbrella arrangement then you cannot do an employer contribution to a SIPP. Worth contacting FOS as well. 

dunstonh

Worth contacting FOS as well. 

Why?  The FOS have no remit or authority or any control over this.    You may as well complain to Tescos, Apple and your local swimming pool.