Setting Up Your Private Pension/SIPP Scheme Pension Payments
How to Get Started
To set up your Private Pension/SIPP Scheme pension payments through SmartWork, follow these simple steps:
To begin, please complete the SmartWork Private Pension/SIPP Scheme form, which can be accessed through this link.
Before filling out the form, we recommend familiarising yourself with the information available on our Knowledge Base. This will help you understand the process and clarify any questions you may have regarding SmartWork’s handling of pension contributions.
If you would like to receive a pay projection that includes your new pension amount before making a decision, please reach out to our team at sales@smartwork.com.
Once you have submitted the form, our team will carefully review it to ensure that all necessary details are provided. We will then send you a confirmation email confirming the setup of your pension payments from the specified date.
If you are utilizing an Independent Financial Advisor (IFA) as an intermediary, please inform us accordingly.
Important Information
Please ensure that the form is completed with as much detail as possible. If there are any uncertainties, we kindly request that you hold off on submitting the form until you have obtained the necessary information. To initiate onward payments to a SIPP, please complete the form provided here.
To set up the SIPP, please indicate to SmartWork how much of the assignment rate you wish us to allocate. If agreed, SmartWork will create an amended schedule at the revised assignment rate, which will remain in place for the period of the assignment. The contribution level will be fixed for the period of the current assignment. An admin fee of £25 will apply if the contribution levels are changed mid-assignment.
Please note you cannot sacrifice 100% of the Contract / Assignment Income for a private pension, and the minimum assignment rate is £125 per day. For example, if your rate is £500 per day and you wish us to allocate £100 per day into your pension, the assignment rate would change from £500 to £400 per day on your schedule.
SmartWork will transfer the Employer contribution to the chosen pension provider by BACS payment around the 10th of each month. Please note that SmartWork will not set up Direct Debit or Standing Orders with the providers. The cost for operating the scheme is £25 p/m and will be deducted from the amount allocated before transferring the Employer contribution to the chosen pension provider.
The annual allowance limit for the current tax year is £60,000. This limit includes all your contributions, tax relief and employer contributions across all your pension arrangements. If you go over this limit, this will result in a tax charge, known as the annual allowance charge.
Please note that SmartWork is unable to monitor your allowance on your behalf. It is important that you check with your pension advisor or financial planner before you decide on the level of contribution. We are not regulated by the FCA and, as such, are unable to offer any financial or retirement planning advice.
Please check that the plan allows Employer Gross Contributions, and SmartWork will contribute to your chosen Pension Plan on a Gross Employer’s Contributions basis by an electronic Bank Transfer (not a direct debit).
We work with the following SIPP providers:
Aegon
AJ BELL
Aviva
Close Brothers
Fidelity
Fundamental
Hargreaves Lansdown
Interactive Investor
Novia Financial
Pension Bee
Royal London
Scottish Widows
St James Place
Standard Life
Sippdeal Trustees Ltd
ii SIPP Through SmartWork
We’ve teamed up with Interactive Investor to offer our contractors the option to set up an SIPP in just a few easy steps. You can contact your business manager to guide you through the process or click on this dedicated link to start: https://www.ii.co.uk/ii-partners/smartwork-umbrella
Interactive Investor is a flat-fee SIPP provider and the second-largest investment platform in the UK by assets under administration. With the ii SIPP, you will pay a simple, flat fee. Most other pension providers charge percentage fees that grow with your pension. You can also use the ii SIPP to bring together other pensions so you can manage everything in one place via their website or user-friendly app.
If you have any questions, you can also reach out directly to the ii welcome team via email or phone, who will happily assist you: Email: welcometeam@ii.co.uk, Phone: 0345 646 2390
Additional Information
Further information can be found at https://www.gov.uk/tax-on-your-private-pension/annual-allowance, or alternatively, be sure to seek independent advice from a financial advisor should you need it.