Taking first UFPLS from a small Hargreaves Lansdown SIPP

Nationwide8

Yet again thanks bowlhead ^^^ Yes I understand about the private pension,just last night in the midst of my mind whirring I got worried :eek:

Thanks to those who explained the figures last night,initially just could not work out the figures as they are worked out in a way I would never have guessed but now I've slept on it,i understand it.That said if I hadn't have come on here in the first place wouldn't have had a clue about SIPPs or be brave enough to take the plunge....OR realised how the figures are worked out.

Hopefully all to do again next ( 17-18 ) tax year when I'll withdraw more than in the 16-17 tax year.

Nationwide8

Is it form P55 you fill in to claim tax back ? ....and about what time do people fill it in ? Jan,Feb,March ?? Am talking for 17-18 tax year here.
Won't worry about the £26 tax owed from 16-17 tax year as I'll just claim it when I get my annual tax statement about October.

Never having filled any tax form in just trying to "nail" the whole process down in my head.

faddy

Thanks for the comprehensive reply

bowlhead99 wrote: »

- to withdraw via UFPLS you have to complete the risk questionnaire and get it back to them, which you can either do by clicking on their website to get it sent in the post, filling it out and posting it back, or by phoning them and talking through it and answering the questions after going through security to check it's you.

Does it have to be account holder in person doing phone risk questionnaire, or could my wife answer security questions then leave the talking to me? Or is it just a question of saying "yes I understand" to everything?

- after they have the completed risk questionnaire they can send you the application form for a UFPLS withdrawal which will arrive in a day or two by post or within a few minutes / hours by email. Then you can fill it out and sign and return it in the post with copy of your ID. Once this reaches them by post if all is in order it might take 3-4 working days for the funds to show as withdrawn from your online account and credited to your bank with the tax deduction.

So a week from opening account to getting money back in the bank wouldn't be an unreasonable target?

if you have maxed out your contribution allowance you will not be able to top it up until the next tax year so your account is sitting there at risk of closure.

If you did - accidentally or deliberately - add to the account in excess of the limit, would you get a tax top up which HMRC would eventually claw back, but still pay tax when withdrawing the excess?

It just gives them some "terms and conditions" support if they decide they want to close down your account because you are taking the mick by making them work for free when you don't actually want any investments. Being a guinea pig to find out what circumstances they'll really go ahead with it, could be an expensive lesson.

Is it known whether they give any warning - and opportunity to pay in more if contribution allowance permits - before closing?

Audaxer

This is an interesting thread I have found from a year ago, about taking a first UFPLS from a small HL SIPP, which I am about to do, and I guess some others may be in the same position.

I have £3,600 cash in my HL SIPP that I opened a few months ago, and plan to withdraw a UFPLS lump sum before the end of the tax year as I am well below my Personal Tax Allowance limit this year.

I am surprised that you can't seem to do it all online, so I'm glad I checked now to ensure I get it processed before the end of the tax year. From what I understand the process works as follows:
- I can take out a maximum of £2,600 out as I need to leave in a minimum balance of £1,000 if I don't want the SIPP to be closed.
- I will need to phone HL and answer questions on a risk assessment over the phone about taking out a UFPLS. They will then send me a form through the post that I will need to complete, sign and send back for them to process the UFPLS.
- The payment will be taxed on an emergency code and sent to my bank account, but I will be able to claim the tax back from HMRC as I am well under the Personal Tax Allowance for this tax year.

Does that sound correct or am I missing anything?

Rob749

Yes, thats all correct. did the same for my wife last year, will do it again this tax year. Emergency tax paid, and then claimed back on Form P55. Think I did it online. Duly received refund after a few weeks. Once that was done, wife received tax code, and at the year end a tax statement listing income from HL, so next time tax will be automatically deducted at the proper rate. Free money !

Rob749

Filled out form P55 online, but had to print and send I think. Unless systems have been updated since !