Ufpls??

tacpot12

That sounds right, apart from the £90 each. AJ Bell charge £100 per year to make regular UFPLS payments, so Halifax may do the same. I would check with them if there is a charge for regular UFPLS payments.

Audaxer

AJ Bell only charge £25+VAT for "One-off payment of a tax free lump sum, income payment, uncrystallised funds pension lump sum or small lump sum" according to their website.

To cut down on costs I would consider taking a year's worth of income by one large UFPLS each year, putting it into a separate saving account and paying yourself monthly income from that.

greenglide

To cut down on costs I would consider taking a year's worth of income by one large UFPLS each year, putting it into a separate saving account and paying yourself monthly income from that.

and if it is taken in March each year there shouldn't be much of an issue with tax after the first payment.

Jerben

greenglide wrote: »

and if it is taken in March each year there shouldn't be much of an issue with tax after the first payment.

I intend to go down the road of one off UFPLS per year, (when the time comes!).
But I dont think I'll do it in March, due to many of the admin stories we read on here! It would be a nightmare to miss a years personal allowance due to a platform 'mistake'.

clivep

My wife and I have each been taking a UFPLS each year since they were introduced to use up our personal allowances (we're both under state retirement age). This allows a £15,333 UFPLS this tax year if you have no other taxable earnings.

We take them in April and fill out the P55 to get the tax refunded. Fairly painless to do online and the tax refund usually takes less then 4 weeks.

We also continue to pay £2,880 into our SIPPs to get the £720 added.

So for me:
Net income £12,453
Total tax cost... -£720
Decrease in pension pot £11,733

Very tax efficient, however...

These tax free sums go into our estates and are eventually going to get clobbered with 40% inheritance tax whereas our son is named beneficiary to our pension plans so that they won't form part of our estates. Consequently, taking any tax free cash out of the pensions looks like costing more tax in the long run than leaving it there unless the money is gifted away at least 7 year before death.

green_man

Audaxer wrote: »

To cut down on costs I would consider taking a year's worth of income by one large UFPLS each year, putting it into a separate saving account and paying yourself monthly income from that.

Yes this is the approach I would take if it can’t find anywhere that does cheap UFPLS, £25 is much better but still £300 a year for monthly payments. My birthday is end of Jan and I currently have no taxable income so I will have Feb and March to sort out the first payment which hopefully should be fine.

pip895

green_man wrote: »

Yes this is the approach I would take if it can’t find anywhere that does cheap UFPLS, £25 is much better but still £300 a year for monthly payments. My birthday is end of Jan and I currently have no taxable income so I will have Feb and March to sort out the first payment which hopefully should be fine.

I don't think HL charge for UFPLS but it depends on your investments - if its in funds then you need to consider the 0.45% annual charge. It might work out cheaper if you hold mainly etfs & IT's and don't trade much though.