Still gathering requirements...
Provided you were a member of a pension plan (any pension plan) in the previous year and provided you made less than £30k contribution to it, then carry forward applies. As in £40k for the present year and £10k carried forward from the previous year. By way of illustration for two years running I contributed £80k into my SIPP using carry forward rules (£160k total). HTH.
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Nervous Newbie
Hi there,
I have a silly question: I have old private pension from my ex employers. Can my Ltd company directly contribute to them or do I have to open up a new SIPP for my ltd company to contribute to for the tax etc?
I have 3 old pension funds which I didn't contribute since 2016, one of them, L&G said they can accept new employer contribution..
Separately, can the ltd do one lump sum contribution or it need to be every month?
I am reasonably clear on the personal contribution rules, not sure about ltd contribution as new to this part.
Thanks a lot.
Last edited by Orangecat; 31st July 2020 at 21:20.
Only the companies holding those pots of money can answer your questions. A very good strategy to consider would be to open a new pension (SIPP) and move those various pots into it. Many folks do that, putting everything in one place makes it far easier to manage. There is no problem contributing monthly or and hoc lump sums. But you must tell the pension platform they are company contributions. That bit is essential. I recommend you look at AJ Bell for smaller pots (0.25% fee) or Interactive Investor for larger pots, flat rate fee independent of pot size. HTH.
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Contractor Among Contractors
Technically - yes, if the schemes will allow it. Practically - try not to let the tax tail wag the dog, think carefully whether those old schemes are worth it.
Good advice ^. Except personally I prefer not to have ALL eggs in one basket.
Old farts like me will be pleased to know that II SIPP have dropped their drawdown fees. Previously, you paid £10 a month for the SIPP account and another £10 per month drawdown fee, even if you had zero £ drawdown. So, effectively, running a SIPP in drawdown at II effectively halves in monthly cost from October 1st. Thanks II. Very much appreciated.
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Nervous Newbie
The other thing that may be useful to note is that timing is everything, especially when opening a SIPP.
Would be good to get data points on times here, for example Vanguard is roughly 2 weeks as they do the company validation etc. because you're going to be paying in company contributions.
How about CB? II? AJBell? HL?
I have done this with all those providers. I advise against Close Bros now. I used to recommend them but as time went on I found their systems so Flintstone-like that I have moved family portfolios from them to AJ Bell. My own experience is that the act of making contributions from Ltd Co to all those platforms is pretty pain free. Just follow the system to the letter. Note that you must follow the format exactly as requested for electronic transfers in, or the money can get lost within the platform's bank account. It can take a couple of weeks to unravel it if that happens. Otherwise, if everything is correct it takes about three days typically from the platform getting the money until it becomes investable as cash in your account. HTH
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Nervous Newbie
Ah, I was referring more to opening the SIPP account in the first place (as opposed to making the investments). Happy to report that dropping them a secure message resulted in the account being active and ready to invest in 2 business days rather than the quoted 7-10 business days. Quite happy with Vanguard so far.![]()
Nervous Newbie
Hi
Can anyone please help me with an issue I have?
I’m joining a new Umbrella company as they allow personal pension contributions via salary sacrifice. They support Hargreaves Lansdown and AJ Bell but can anyone help me through the process on setting one up with either of these two firms (recommendation appreciated) and providing the information to the umbrella company to allow them to contribute via salary sacrifice ??
Many Thanks![]()