No employer contributions — claim 20–45% tax relief yourself · Vanguard · PensionBee · AJ Bell · HL compared
Self-employed people are excluded from auto-enrolment and receive no employer pension contributions. The responsibility for retirement saving falls entirely on you — but the tax relief available makes a SIPP (Self-Invested Personal Pension) one of the most powerful tools available. For every £800 you contribute, the government adds £200 in basic rate relief (making it £1,000 in your pension). Higher-rate taxpayers can reclaim a further £200 through Self Assessment.
| Tax band | You contribute (net) | HMRC adds | Pension receives | Your extra claim |
|---|---|---|---|---|
| Basic rate (20%) | £800 | £200 automatic | £1,000 | Nothing extra |
| Higher rate (40%) | £800 | £200 automatic | £1,000 | +£200 via Self Assessment |
| Additional rate (45%) | £800 | £200 automatic | £1,000 | +£250 via Self Assessment |
Vanguard's SIPP is the lowest-cost pension for self-employed people with pots under £250,000. The 0.15% platform fee capped at £375/yr and commission-free Vanguard fund purchases mean total annual costs (platform + fund OCF) are typically under 0.40%. The LifeStrategy fund range handles all asset allocation in a single fund — ideal for those who want to focus on their business, not their investments.
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PensionBee is built for self-employed people who have accumulated multiple old workplace pensions they've never consolidated. Their service locates old pensions and merges them into a single PensionBee plan — removing the complexity of tracking multiple providers. The app is the simplest pension interface available. Fees are higher than Vanguard, but the consolidation service and simplicity justify this for many.
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AJ Bell's SIPP suits self-employed people who want wider investment choice — Vanguard funds, iShares ETFs, investment trusts and individual shares all in one place. The 0.25% platform fee is competitive, and the dealing charge on funds (£1.50) and shares (£9.95) are reasonable for infrequent traders. A solid all-round SIPP for the self-employed investor who wants more than a LifeStrategy fund.
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Interactive Investor's flat-fee SIPP (£12.99/mo) becomes the cheapest major option for SIPP pots over approximately £62,000 (vs Vanguard's 0.15%). For a self-employed person with a growing pension pot, the flat fee saves a significant and increasing amount as the pot grows. The widest investment universe (40,000+) and free monthly trades included in the subscription make it exceptional value at scale.
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Hargreaves Lansdown is the UK's largest pension platform by assets and has the best at-retirement service — drawdown advisers, annuity sourcing, and pension income planning. For self-employed people approaching retirement or wanting the most comprehensive service, HL is the premium option. The 0.45% fee is the most expensive major platform, but justified for those who value support and breadth at retirement.
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| Provider | £30,000 | £60,000 | £150,000 | £250,000+ |
|---|---|---|---|---|
| Vanguard | £45/yr | £90/yr | £225/yr | £375/yr (capped) |
| AJ Bell | £75/yr | £150/yr | £375/yr | £625/yr |
| Interactive Investor | £156/yr | £156/yr | £156/yr | £156/yr |
| HL | £135/yr | £200/yr* | £200/yr* | £200/yr* |
| PensionBee (0.75%) | £225/yr | £450/yr | £1,125/yr | £1,875/yr |
*HL fund fee uncapped; share/ETF portfolio capped at £200/yr. Underlying fund OCF (typically 0.15–0.22%/yr) applies to all providers in addition to platform fee.
Vanguard SIPP. Lowest total cost, LifeStrategy handles everything, no decisions beyond contribution amount.
PensionBee. Best consolidation service — finds and merges old pots automatically. Simplest ongoing experience.
Interactive Investor. Flat fee beats percentage-fee providers above ~£62k. Wide investment universe for the larger pot.
Hargreaves Lansdown. Best at-retirement service — drawdown advice, annuity sourcing, phone support.
Yes. When you pay into a SIPP, the provider claims basic rate (20%) relief automatically — a £800 net contribution becomes £1,000 in your pension. Higher-rate taxpayers claim an additional 20% via their Self Assessment tax return. Additional rate taxpayers can claim relief up to 45%. A £10,000 gross pension contribution costs a 40% taxpayer only £6,000 net after both relief claims.
The annual allowance is £60,000 per year (2026/27), subject to 100% of your earnings. You can also carry forward unused allowances from the previous three tax years — potentially allowing contributions of up to £180,000 in a single year after a period of lower contributions.
Yes — self-employed people build State Pension entitlement through National Insurance. Class 4 NI (paid on self-employment profits) and Class 2 NI both build qualifying years. You need 35 qualifying years for the full new State Pension (£11,502/yr in 2026/27). Check your NI record at the HMRC Personal Tax Account and fill gaps if needed.
You can always contribute up to £3,600 gross per year regardless of earnings — the provider claims basic rate relief on the first £2,880 net contribution. In zero-earnings years, you can still put in £2,880 and receive £720 tax relief. Carry forward also lets you make larger contributions in high-income years using allowances from previous years.