SIPP + Investment Options

cloud_dog

dqnet wrote: »

Perfect - thank you.

By the way, I'm assuming I should wait for the tax relief money to come through first otherwise I would be investing with the £2880 and when the remaining amount comes in it would require a separate investment fee as it counts as a second fund / issue?

Different providers operate differently but most follow your investment option. So if you invest £2880 in Fund X, when the £720 comes in the provider will also invest the £720 in to Fund X.

Which provider are you going with?

dqnet

hi cloud_dog - I was thinking AJ Bell unless you think another would be better for me?

Sorry, just so new to all of this and I really need to start thinking about my future.

thanks.

Thrugelmir

dqnet wrote: »

Unfortunately I haven't been working this FY no (which I believe restricts me to the £2880).

You can also use the unused annual allowance from the 3 previous tax years.

dqnet

Thrugelmir wrote: »

You can also use the unused annual allowance from the 3 previous tax years.

- thats very interesting. How would I make a claim for that..? Is there a special procedure?

dunstonh

dqnet wrote: »

- thats very interesting. How would I make a claim for that..? Is there a special procedure?

No. It falls under self-assessment. you just do it from your own calculations.

In reality, HMRC are able to monitor it remotely as pension contributions are recorded under your NI number. Just as your income is. So, their computer can flag up people who have overpaid and need investigating. Although it typically takes 2-3 years after the breach for HMRC to come knocking.

ColdIron

Thrugelmir wrote: »

You can also use the unused annual allowance from the 3 previous tax years.

You are still subject to your annual earnings limit which cannot be carried forward. If you have earned less than the allowance this year you cannot even use the full current years allowance let alone carry forward from previous years. If your current years earnings are, say, £10,000 then that's your limit, simple as that

dqnet

ColdIron wrote: »

You are still subject to your annual earnings limit which cannot be carried forward. If you have earned less than the allowance this year you cannot even use the full current years allowance let alone carry forward from previous years. If your current years earnings are, say, £10,000 then that's your limit, simple as that

But what if I haven't earned anything in the last 3 years, i,e. taken time of work to do a few things in life and the last year being medical reasons (recuperation). Doesn't that mean I am entitled to the full 3 years of pension?

No. It falls under self-assessment. you just do it from your own calculations.

So do I just transfer the full amount into the SIPP as I would with £2880? So transfer £8640 in one go without having to do anything else?

thanks.

cloud_dog

dqnet wrote: »

hi cloud_dog - I was thinking AJ Bell unless you think another would be better for me?

I'm really not sure what would be 'best' for you

What I would say is that AJ Bell (YouInvest) and Cavendish are often spoken about on these boards and I think I'm ok saying that a lot of people like the providers. I think HL is probably the best from a usability and customer service perspective but, they are costly (AJ and Cavendish are 0.25% for funds (OIECs), whilst HL is 0.45% for funds).

Have you 'played' with Snowmans most excellent comparing prices spreadsheet? (I'll find the link to it and edit it in shortly).

Lungboy

Be aware that AJ Bell charge £1.50 to buy funds, so if you're drip feeding and buying each month that could end up as quite a cost.

dqnet

cloud_dog wrote: »

I'm really not sure what would be 'best' for you

What I would say is that AJ Bell (YouInvest) and Cavendish are often spoken about on these boards and I think I'm ok saying that a lot of people like the providers. I think HL is probably the best from a usability and customer service perspective but, they are costly (AJ and Cavendish are 0.25% for funds (OIECs), whilst HL is 0.45% for funds).

Have you 'played' with Snowmans most excellent comparing prices spreadsheet? (I'll find the link to it and edit it in shortly).

Brilliant - thanks. p.s. that excel spreadsheet is fantastic.

No. It falls under self-assessment. you just do it from your own calculations.

Spoke to Pensionwise. Unfortunately I cant use the previous years as I needed to have been self-employed or employed so its just that £2880.00 I have for this year.