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.
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.
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.
Interactive Investor's flat-fee SIPP (Core £5.99/mo, £71.88/yr) becomes cheaper than Vanguard once a pot passes roughly £48,000, on our calculation below. 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.
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. At a maximum of 0.35% it is no longer the most expensive major platform, though it remains dearer than AJ Bell for most pot sizes.
| 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 (£12,547.60/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.
A self-employed person has no employer contribution, so the whole pot comes from their own contributions and the tax relief on them. That makes both the relief and the charge worth getting right. Charges verified 2 September 2026.
The account or platform charge only — the fee the platform levies for holding your money. We compare it because it is the one cost you can control by choosing a provider, it is published, and it compounds.
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| Platform | Account charge, verified 2 September 2026 | Source |
|---|---|---|
| Vanguard | £4 a month (£48/yr) while your total invested balance is under £32,000; 0.15% a year above that, capped at £375. One account fee across all your Vanguard accounts. | Vanguard: Fees explained |
| AJ Bell | Capped at 0.25% a year. Monthly investing is free; online dealing from £1.50. International dealing and FX capped at 0.75%. | AJ Bell: Charges |
| Hargreaves Lansdown | Account charge is a maximum of 0.35% a year, billed monthly. Share holdings are capped separately. | Hargreaves Lansdown: Charges |
| Interactive Investor | Flat monthly plans: Core £5.99 (portfolios up to £100,000), Plus £14.99, Premium £39.99. Dealing £9.99 (Core) or £7.99 (Plus). | Interactive Investor: Our charges |
| InvestEngine | £0 platform fee on the DIY service; commission-free dealing and no FX charge. Managed portfolios are charged separately. ETFs only. | InvestEngine: Costs |
| PensionBee | 0.50%–0.95% a year below £100,000 depending on plan (Tracker 0.50%, 4Plus 0.85%, Shariah 0.95%), tapering above £100,000. | PensionBee: Fees |
| Pot size | Vanguard | AJ Bell | Hargreaves Lansdown | Interactive Investor | InvestEngine (DIY) |
|---|---|---|---|---|---|
| £5,000 | £48 | £12 | £18 | £72 Core | £0 |
| £10,000 | £48 | £25 | £35 | £72 Core | £0 |
| £25,000 | £48 | £62 | £88 | £72 Core | £0 |
| £50,000 | £75 | £125 | £175 | £72 Core | £0 |
| £100,000 | £150 | £250 | £350 | £72 Core | £0 |
| £250,000 | £375 | £625 | £875 | £180 Plus | £0 |
What the arithmetic shows. Vanguard is often described as the lowest-cost option, and above about £19,200 it usually is — but the £4 monthly minimum below £32,000 makes it the more expensive choice on a pot that is just starting, where AJ Bell's 0.25% costs less. From roughly £47,900 Interactive Investor's flat Core plan is cheaper than Vanguard, and the Plus plan overtakes it at about £119,900. PensionBee is excluded from the table because its fee covers management as well as the platform.