An employer contribution is a payment made from a company (typically your own limited company) into a Self-Invested Personal Pension (SIPP). These contributions are made gross, which means they are not taken from your personal income and are not subject to Income Tax or National Insurance.
This approach is commonly used by company directors and self-employed individuals looking to contribute to their pension in a tax-efficient way.
Why Use Employer Contributions?
Employer contributions are particularly useful for:
Self-employed individuals or those with a limited company
Company directors looking to make pension contributions directly from their business
People who want to take advantage of corporation tax relief on pension contributions
Those planning ahead to maximise pension tax efficiency
Instead of paying yourself more income (which may incur higher personal tax), you can make a gross contribution to your SIPP from your company.
This does not constitute financial advice and you should always check with a financial adviser before making any decisions.
How Does Employer Contributions Work with Prosper?
If you’re contributing from a UK-registered company, you can make employer contributions to your Prosper SIPP.
Here’s how it works:
Contributions must be paid from your company’s bank account
You’ll need to complete an Employer Contribution Agreement form
Once set up, you can make contributions directly from the company to your Prosper SIPP
For full details and a step-by-step guide, please see the article below: