HL SIPP fees.

TheShape

I have just opened a HL SIPP with the first regular contribution due to be made on the 7th (9th).

When setting up the account I chose an amount to be contributed monthly and chose to invest this whole amount each month in a fund.

I understand that fees are worked out at the end of each month. How should I pay these fees? Checking each month and funding the amount of the fees by debit card appears to be an option or should I amend the funding options to perhaps only invest a percentage of each month's contribution, leaving some of the contribution in cash to pay fees?

Fermion

If the fund is an accumulation fund HL will sell a small number of units to cover the fees, however if the fund is an income fund then they will pay an income/yield and you will be able to cover the fees from that. You have an option in HL to set a min cash balance to cover charges and reinvest the remainder.

NordicNoir

Fermion wrote: »

If the fund is an accumulation fund HL will sell a small number of units to cover the fees, however if the fund is an income fund then they will pay an income/yield and you will be able to cover the fees from that. You have an option in HL to set a min cash balance to cover charges and reinvest the remainder.

Try not to leave it to HL to sell funds to pay the fees - they will charge you £1.50 each time. The easiest way is to just transfer an amount to your account periodically. If you will not be using your whole annual allowance, make the payment as if you will be using it for funding, then you will also gain the tax relief on the payment. If you do the transfer saying that it is for fees, you will not get the tax relief.

MoneySavingUser

You can also open a fund and share account with them and put some cash in there to cover fees and then in settings tell it to take the fees from there - avoids you selling tax-free investments to pay fees

TheShape

MichelleUK wrote: »

Try not to leave it to HL to sell funds to pay the fees - they will charge you £1.50 each time. The easiest way is to just transfer an amount to your account periodically. If you will not be using your whole annual allowance, make the payment as if you will be using it for funding, then you will also gain the tax relief on the payment. If you do the transfer saying that it is for fees, you will not get the tax relief.

Definitely want to avoid the fee. I think I'll make a small payment by debit card to cover the first month and adjust the direct debit so as to add a little extra to cover fees from month two.

zagfles

MoneySavingUser wrote: »

You can also open a fund and share account with them and put some cash in there to cover fees and then in settings tell it to take the fees from there - avoids you selling tax-free investments to pay fees

It's more efficient to pay the cash into the SIPP, assuming you're not right up to the annual allowance/tax relief limit, since you'll get tax relief added and so only need to pay in 80% of the fee.

jamesd

Paying from cash in the SIPP is the most efficient way because you have received tax relief on it.

Debit card or fund and share account are good choices for the ISA because that maximises the amount that can go into or stay in the ISA.

foreversummer

Hi

Can anyone confirm. I opened my SIPP with HL in November. I decided to add some cash to cover the fees on Sunday and made a debit card payment of £50. My suggested minimum cash balance is ££20 but I stuck £50 in with the intention of adding it to my chosen fund at some stage.

Is that OK, as I then read that the minimum top up is £100?

If I want to add the £30 to my fund how do I go about that? If I go to Top Up it asks me a select a fund. Is there not an easier way to just add it to the one I already have?

Foreversummer

NordicNoir

foreversummer wrote: »

Hi

Can anyone confirm. I opened my SIPP with HL in November. I decided to add some cash to cover the fees on Sunday and made a debit card payment of £50. My suggested minimum cash balance is ££20 but I stuck £50 in with the intention of adding it to my chosen fund at some stage.

Is that OK, as I then read that the minimum top up is £100?

If I want to add the £30 to my fund how do I go about that? If I go to Top Up it asks me a select a fund. Is there not an easier way to just add it to the one I already have?

Foreversummer

I do not think that you can add it easily. They require a minimum investment of £100 for a fund trade. The minimum trade for a regular monthly trade is £20 but I think that needs to be an ongoing direct debit payment.

I think that the only way that you will be able to invest the £30 is to add another £70 to be able to make a minimum fund purchase.

That is how I understand HL to work but maybe someone else has other experiences.

foreversummer

MichelleUK wrote: »

I do not think that you can add it easily. They require a minimum investment of £100 for a fund trade. The minimum trade for a regular monthly trade is £20 but I think that needs to be an ongoing direct debit payment.

I think that the only way that you will be able to invest the £30 is to add another £70 to be able to make a minimum fund purchase.

That is how I understand HL to work but maybe someone else has other experiences.

Thank you. That's pretty much what I thought and it is not a problem to do that. I was just concerned that I had added under £100 by debit card and therefore done something wrong. I will add more in due course and in future top up by greater amounts only. I also have a monthly payment set up.

jamesd

Click on the trade icon towards the right in your list of funds. Top ups of less than a hundred Pounds are normally accepted.