Follow this guide if you need to set up and operate a SIPP.
The amounts will be deducted, but no report will be generated for the SIPP provider.
Company Salary Sacrifice (gross pay) #
This case requires the Company to send the sacrifice from pre-tax pay into a named SIPP account. The tax relief will be through payroll.
Use a Payment gross pay item with a negative value:
- Setup > Pay Definitions> Add… > Select company > Group: Payment > Template: Payment>
- Name and Description: SIPP salary sacrifice
- Inputs > Reuse > Use indefinitely
- Add
- Then add this in the Pay Item Editor and enter a minus value for the amount to sacrifice each month. So -100 will sacrifice 100 each month.
Employee Relief at Source (Net pay) #
This case requires the Employee to pay the SIPP payments from their net pay; the SIPP provider will provide basic rate tax relief. Additional relief for higher rate taxpayers may be claimed by filing a Self-Assessment.