SIPP. Been given bad advice? Annual allowance charge

bigadaj

lifecanbetough4 wrote: »

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

Might be worth you reading that link.

The government have finally got rid of the pip messing around, but this gave you another £40k allowance e effectively last year. So all pips ended in mid July 2015, you then have another £40k until the end of this tax year, then all pips align with tax years and no more fiddling between aligning tax years and pip years.

jamesd

lifecanbetough4 wrote: »

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. "

As dunstonh wrote those are the magic words that make everything entirely fine so far as the annual allowance goes.

Most people don't have a clue that PIPs existed, what they are or how they could be changed as yours were to allow more than the usual amounts to be paid in. And most people no longer need to know because it's no longer possible.

Same applies to the two sets of £40k annual allowance for the current tax year that don't matter to most people but might to you. Do read what's at the link you were given.