Why you want a Self Employed Pension
One of the most difficult steps in planning for retirement is getting started. Unlike regular employees who benefit from auto-enrolment, no one is there to do it for you. Starting a habit today means not relying on the state pension of £179.60 per week and, instead, benefiting from:
For sole traders, you could get a 25% boost without making a claim to HMRC - for every £100 you pay in, the government adds £25. If you’re a higher rate or additional rate taxpayer, you can claim back up to 45% through your annual tax return.
For directors of a limited company, your employer contributions may be considered a business expense and could potentially offset the company’s corporation tax. This funding comes from pre-tax income and you may not be liable for employer national insurance.
Tax efficiency - pay no tax on contributions and investments.
Transfer your pension, free of charge
We’ll handle the whole process for you. Just fill in your details in-app or online. We’ll talk to your existing provider and move your pensions over to your Moneyfarm account. The process typically takes 3–4 weeks and is as paperless as possible, depending on your provider.
What you’ll need
Your current provider’s name
Your pension account number
The pension value
The valuation date
Key Facts for the self employed
In the 2021/22 tax year, the maximum you can contribute is £40,000 or your annual relevant earnings, whichever is lower. For example, those earning £32,500 a year will only be able to put £32,500 into their pension annually.
For the majority of investors, this will include all taxable income under income tax, so wages, bonus, overtime or commission. Dividends, property rental income and investment income do not count.
While these count towards the annual allowance, they are not restricted by relevant earnings. However, they must satisfy the 'wholly and exclusively' requirement set by HMRC to qualify for tax relief.
Key pension benefits
Key pension benefits
Free drawdown service
Pay no additional fees for accessing your pension in retirement.
Withdraw up to 25% of your pension tax-free and minimise tax liabilities.
Inheritance tax benefits
Pass on pension funds to your beneficiaries usually free from inheritance tax.
Open a Private Pension in minutes
Discover your investor profile
To get to know you and your goals, we’ll ask you how you feel about risk and what you want to achieve.
Open your recommended portfolio
We’ll recommend a globally diversified portfolio that best fits your needs and goals.
Invest when you’re ready
Transfer your existing pension or fund your portfolio directly by Direct Debit.
One low, simple fee.
As your money grows we’ll lower the percentage of your fees.
Why choose Moneyfarm?
We’ve been growing our 80,000+ investors’ portfolios for almost 10 years.
You get a choice of 7 risk levels to choose the best option for your account.
You’ll have a dedicated consultant to answer any questions you have about your portfolio.
All our portfolios can be made socially responsible with our ESG offering, backed by MSCI data.