SIPP. Been given bad advice? Annual allowance charge

dunstonh

So Pip 1 was opened and closed within 48 hours. Pip 2 was then opened.
Where is the clerical error?

Did you get your written confirmation of the change in the PIP? I have been assuming you didnt based on what you said. That is your evidence should they ask for it. So, you would have explanation and evidence. No problem.
Did you use the same pension provider or a different one? You cant have two PIPs ending in the same tax year. If the second provider didnt know they would have ended it on 5th April 2015.

lifecanbetough4

dunstonh wrote: »

Did you get your written confirmation of the change in the PIP? I have been assuming you didnt based on what you said. That is your evidence should they ask for it. So, you would have explanation and evidence. No problem.
Did you use the same pension provider or a different one? You cant have two PIPs ending in the same tax year. If the second provider didnt know they would have ended it on 5th April 2015.

I only have 1 SIPP/provider and I believe the 2 PIPs were/are:

PIP1. 24/3/2015 to 25/3/2015.
PIP2. 26/3/2015 to 25/3/2016.

I have an email dated 26/3/2015 from my SIPP provider. This was after I had sent the £40k(£32k was the actual amount) on 24/3/2015.

"I’ve just checked, your first payment is on file now and in your SIPP bank account in this tax year, your input period has been changed so you are more than welcome to make your next payment as you wish.
You are now officially in the next tax year…..a week early. "

dunstonh

Stop worrying then. Job done.

All our posts have been on the basis of thinking you had not changed the PIP. You have.

lifecanbetough4

Ok thank god. I am a shaking wreck right now.

zagfles

mania112 wrote: »

Somebody who earns £100,000 would like to pay a member contribution of £80,000 into a new money purchase pension scheme before the end of the 2015/16 tax year.

They pay a gross amount of £40,000 on the 1 November 2015.

As this is the first contribution to a new plan the input period would normally run from 1 November 2015, the date of the first contribution, to 5 April 2016. The member can request a nomination date earlier than this so they nominate 30 November 2015.

Give this a read-through and match the example to your situation.

What a load of rubbish. I hope that isn't on the RL website still? Have they not heard about PIPs now being aligned to tax years? As from 9 July 2015 PIPs can't be manipuated in this way.

(OP - you're OK as the rules changed after your contributions).

mania112

zagfles wrote: »

What a load of rubbish. I hope that isn't on the RL website still? Have they not heard about PIPs now being aligned to tax years? As from 9 July 2015 PIPs can't be manipuated in this way.

(OP - you're OK as the rules changed after your contributions).

Yeah I copied that in without reading it - and yep, still on their website. A bit worrying.

deaglecat

so in summary, does the OP now have £10k left of his £40k 2015/6 allowance ?

zagfles

deaglecat wrote: »

so in summary, does the OP now have £10k left of his £40k 2015/6 allowance ?

No he has £40k left, assuming the 2 contributions in March 2015 were all he's contributed.

Due to the transitional rules aligning PIPs with tax years.

https://www.gov.uk/government/publications/pensions-technical-note-transitional-provisions-for-aligning-pension-input-periods/pensions-technical-note-transitional-provisions-for-aligning-pension-input-periods

lifecanbetough4

zagfles wrote: »

No he has £40k left, assuming the 2 contributions in March 2015 were all he's contributed.

Due to the transitional rules aligning PIPs with tax years.

https://www.gov.uk/government/publications/pensions-technical-note-transitional-provisions-for-aligning-pension-input-periods/pensions-technical-note-transitional-provisions-for-aligning-pension-input-periods

Be interesting to know if dunstonh agrees with this?

As I am looking to put in £25k but thought I could only put in £10k before 31/3/2016

sandsy

You were told about the £40k in your previous thread on the same subject.