JPJShare admits 'schoolboy error' in Sipp illustration
An online execution-only stockbroking platform that offers a Sipp has removed incorrect information about pension tax relief from its website after questioning from Money Marketing.
JPJShare.com displayed information on its Benefits of a Sipp page, which stated that due to income tax relief, a basic rate taxpayer who saves £20,000 into a Sipp will receive £24,000 in total pension contributions.
In fact, a basic-rate taxpayer with £20,000 would receive £25,000 in total contributions as the 20 per cent tax relief is calculated on the gross amount.
A spokesman for Isle of Man-based JPJShare.com says: “The graphical error was removed from our website as soon as Money Marketing brought it to our attention.
“All client tax reclaims have been processed correctly by our pension administrator and at no time were any of our clients disadvantaged. We apologise for any confusion caused.”
Bestinvest senior analyst Ben Seager-Scott says: “This is a common mathematical mistake that is all too easy to make. However, it does not do this firm’s corporate image any good to be making schoolboy errors.”