Paying £2880 into pension when retired

jerrysimon

I contributed £2880 (in my wifes name as she only earns £3K/year) before 31/3/18 and got the tax refunded making it up to £3600 in about May 2018, so I assume I can now do the same again before 31/3/19 ?

I think HL allow you to now withdraw it all after 12 months without penalty and set up a new SIPP ready for the next year, which has changed when you use to have to leave £1K in. Hopefully I can do that with the one currently running and full up now

missile

jerrysimon wrote: »

I contributed £2880 (in my wifes name as she only earns £3K/year) before 31/3/18 and got the tax refunded making it up to £3600 in about May 2018, so I assume I can now do the same again before 31/3/19 ?

I think HL allow you to now withdraw it all after 12 months without penalty and set up a new SIPP ready for the next year, which has changed when you use to have to leave £1K in. Hopefully I can do that with the one currently running and full up now

Yes :T

You were always able to drawdown the full amount over a twelve month period. The penalty only applies if you close the account within 12 months of opening.

drphila

Just been speaking to HL because I was a bit concerned about timescales ie the earliest tax relief can be credited to SIPP is 21 March



https://www.hl.co.uk/help#sipp,-drawdown-and-annuity/sipp/tax-relief/when-will-tax-relief-be-received




and then lump sum has to be requested by post.


But this isn't a problem because you can withdraw £2600 (this is the max. to ensure £1000 is kept in SIPP) immediately after funding the SIPP and HL won't close the SIPP knowing the tax relief is on its way.


If timescale is tight, other platforms (albeit more expensive) to consider are Close Bros who credit tax relief immediately and Fidelity who take 6 approx weeks to credit it but allow on-line withdrawals

Asghar

drphila wrote: »

Just been speaking to HL because I was a bit concerned about timescales ie the earliest tax relief can be credited to SIPP is 21 March

Fidelity who take 6 approx weeks to credit it but allow on-line withdrawals

If you deposited/invested into a Fidelity SIPP today then you would get the tax relief at the same time as HL, on the 21st March.

Never knew that Close Bros credited the tax relief immediately.

skycatcher

drphila wrote: »

Just been speaking to HL because I was a bit concerned about timescales ie the earliest tax relief can be credited to SIPP is 21 March



https://www.hl.co.uk/help#sipp,-drawdown-and-annuity/sipp/tax-relief/when-will-tax-relief-be-received




and then lump sum has to be requested by post.


But this isn't a problem because you can withdraw £2600 (this is the max. to ensure £1000 is kept in SIPP) immediately after funding the SIPP and HL won't close the SIPP knowing the tax relief is on its way.


If timescale is tight, other platforms (albeit more expensive) to consider are Close Bros who credit tax relief immediately and Fidelity who take 6 approx weeks to credit it but allow on-line withdrawals

Do you know if you have a SIPP already in drawdown is it possible to transfer from the SIPP to the Drawdown SIPP online and request payments or do you have to complete paperwork again like in the first instance of doing this?

Thanks

skycatcher

Just had reply to my query from HL and you have to go through all the paperwork again each time you crystallise!

drphila

Asghar wrote: »

If you deposited/invested into a Fidelity SIPP today then you would get the tax relief at the same time as HL, on the 21st March.

Yes, but the subsequent withdrawal should be quicker since its on line.

drumtochty

No DRPhila,


In this case you have in each case of taking out the tax free amount, you have by Law to go through the crystalisation process to prove that the person that is receiveing the payment has considered their options no matter who the provider is. The person receiveing the money must receive an illusration, no ifs, no buts.


This must happen each time the person wants a new tax free payment from each different years, if on the other hand, let's say the person puts in three different payments in three different years and in year three wants to take out the three years tax free payments this only needs one illustration and one questionaire filled in.



With regards to the payments all the providers mentioned above have online systems and they all pay in by an large similar timescales as they all tend to have a monthly day that they do payment runs.

drphila

drumtochty wrote: »

The person receiveing the money must receive an illusration, no ifs, no buts.


.

I know this and the illustration can be provided on-line but I was originally told by customer services that the forms could be returned on-line, but on rechecking with them today it seems they have to be posted.

Nullboris

Just like to say , great thread. I hope to do this for the next 5 or 6 years , maybe even past SPA if I have the spare cash. Wont be withdrawing anything tho.