Sole Trader Pension Contributions - Bank Account

sludgesurfer

Looking for some advice on pension contributions for a basic rate tax payer sole trader.

My understanding is that these contributions receive the regular pension tax relief from the pension provider.  They are not however deductible as a "business expense" as this would effectively be receiving the relief twice.

As such, does it matter whether these contributions are paid from a personal or the business bank account? 

Is there a best practice.  My previous experience is with limited company contributions.

Any advice appreciated.  Thanks.

Marcon

If you're self employed it makes no difference in terms of tax treatment and it doesn't matter which bank account these are paid from. There isn't really a 'best practice' given that the business is not a separate legal entity (whereas a limited company is - which is why it's important to pay pension contributions from the limited company's account rather than a personal one, always assuming the company has the necessary funds to do so).

SVaz

Mine go out of our personal joint account not my business account, as above it doesn’t matter. 

Kim1965

sludgesurfer said:

Looking for some advice on pension contributions for a basic rate tax payer sole trader.

My understanding is that these contributions receive the regular pension tax relief from the pension provider.  They are not however deductible as a "business expense" as this would effectively be receiving the relief twice.

As such, does it matter whether these contributions are paid from a personal or the business bank account? 

Is there a best practice.  My previous experience is with limited company contributions.

Any advice appreciated.  Thanks.

I am acsole trader too. I have paid from both my personal and business account into my sipp. I dont thinknit matters.