Paying into an employee's SIPP

Often the best option for an employee is for their employer to contribute to their SIPP rather than the more usual workplace pensions such as Nest or People's Pension. Fees are lower, and they'll have a wider choice of funds. This change can easily double someone's personal pension.

The barrier to this is often the admin. Employers are often concerned that doing this will be difficult or time-consuming and thus costly.

Looking at the online help for the various popular payroll packages, all seem to suggest that setting up a SIPP contribution is straightforward. It is simply set up as a new pension scheme on the system.

What are the requirements of the popular platforms?

AJBell accept employer contributions and have a guide article on their website on how to set them up. Contributions can be made by bank transfer or direct debit, and on a one-off or regular basis. They also accept cheques. To set up regular contributions they have a PDF which can be emailed or posted to them once completed by the employee and employer.

Hargreaves Lansdown accept employer contributions and have a guide page on their website on how to set them up. This can be done by bank transfer using details listed on the guide page, or by direct debit which needs a PDF to be printed, completed and posted in. They also accept contributions by debit card over the phone.

Interactive Investor accept employer contributions and have a guide article on how to set them up. They have a PDF which can be completed online or printed, which allows you to fill in the details and can be submitted by their secure messaging or by post. The employee can fill in most details, they'll just need to get the employer to complete the direct debit instruction.

InvestEngine don't yet accept employer contributions but say they it is one of their top priorities to add. 

Vanguard don't accept employer contributions. The only exception is for directors of the company, with payment made by a business debit card.

I've also looked at which SIPPs work out cheapest for those needing to accept employer contributions.

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