HL SIPP Fees

masonic

TBC15 wrote: »

Why not buy a fund, buying and selling's free then.

Buying and selling is free, but to hold would mean sacrificing the £200/year cap on platform fees which could be more expensive in the long term.

coastline

As far as I understand fees are paid monthly and with HL are taken from your SIPP account. You can set up a dealing account as posted and pay from there which might not be the best answer. I messaged the helpline recently as was told fees could amount to £50 before there was any need to sell investments. The link in a previous post suggests paying by credit or debit card but it does it include a SIPP ? In the end I left enough in the account to cover one years fees.

badger09

TBC15 wrote: »

Why not buy a fund, buying and selling's free then.

masonic wrote: »

Buying and selling is free, but to hold would mean sacrificing the £200/year cap on platform fees which could be more expensive in the long term.

This ^^^^^

coastline wrote: »

As far as I understand fees are paid monthly and with HL are taken from your SIPP account. You can set up a dealing account as posted and pay from there which might not be the best answer. I messaged the helpline recently as was told fees could amount to £50 before there was any need to sell investments. The link in a previous post suggests paying by credit or debit card but it does it include a SIPP ? In the end I left enough in the account to cover one years fees.

Thanks coastline

That suggests HL won't automatically sell investments to meet a small monthly charge.

If that £50 is accurate, I might just be ok for the rest of this year. Particularly if my small SIPP loses value over the next few months:cool:

kidmugsy

Probably there's a thread somewhere else asking how the poster can rustle up another Direct Debit to use for his current account. And a commenter is suggesting "why not DD £25 pm to HL for a fund and share account?"

badger09

kidmugsy wrote: »

Probably there's a thread somewhere else asking how the poster can rustle up another Direct Debit to use for his current account. And a commenter is suggesting "why not DD £25 pm to HL for a fund and share account?"

If that's a dig at me, then I can assure you, there is no such thread.
I'm a she, by the way.

Thank you for your useful:cool: contribution though.

EachPenny

badger09 wrote: »

If that's a dig at me, then I can assure you, there is no such thread.
I'm a she, by the way.

Thank you for your useful:cool: contribution though.

I wondered the same thing, and did a :rotfl: at the thought you might need to be asking for advice on finding another DD from somewhere.

londoninvestor

You could pay some extra cash into your SIPP to cover the fees. However, as I understand it, HL would automatically claim tax relief on this - I don't know of a mechanism by which you can tell them not to.

So at year end you'd end up doing a tax return to repay that extra tax relief (i.e. what you received on the excess over £3600 of the gross contribution) - that's probably more hassle than it's worth.

Alexland

londoninvestor wrote: »

that's probably more hassle than it's worth.

Another suggestion - you could write a cheque for the fees, attach it to a well trained pigeon, point to Bristol on a map and scream 'fly my precious' then assume the matter is resolved.

Again probably more hassle than it's worth.

Alex

londoninvestor

LOL! Depends if you need to complete a tax return anyway / have a pigeon that's going to Bristol anyway / delete as appropriate

traineepensioner

Audaxer wrote: »

As you are retired and putting £2,880 into a SIPP each year presumably to benefit from the tax relief, why don't you just leave it in cash until it is made up to £3,600 and then draw out £2,600 in the first year (leaving £1,000 cash in to keep the HL SIPP open)? In subsequent years with the £1,000 cash left in you can keep paying in the same £2,880 cash and drawing out £3,600 cash after the tax relief is added. You can then invest the £720 profit along with the additional £2,880 that you would have invested into the SIPP each year, into an S&S ISA instead.

There are various threads on this forum about this as it is quite a common practice and is within the rules. If retired with just a small HL SIPP, unless I'm missing something, this seems to me to be a better strategy than actually investing within the SIPP?

I may be missing something here but don't you have to pay tax if you withdraw the cash from your SIPP? I thought that you were only allowed 25% tax free.