HL SIPP Fees

Audaxer

traineepensioner wrote: »

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.

If your income was well enough below your Personal Tax Allowance, you wouldn't have to pay tax on it. If your income was already above the Personal Tax Allowance, you would still make a gain of £180 after tax each year.

badger09

EachPenny wrote: »

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.

Indeed.

However, some people seem to need to make unhelpful, unpleasant and baseless posts.

Sad.

badger09

londoninvestor wrote: »

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 wrote: »

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 wrote: »

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

Thanks both, you have made me smile.

I am going to Bristol in a couple of weeks though. Shall I just take £12 (or thereabouts) in pennies and hand them in @ Anchor Road:p

Alexland

Let us know how you get on paying the HL receptionist in cash. If it goes well I might start saving my copper pennies.

GazHol

badger09 wrote: »

I have a small SIPP with HL. Already retired so max annual contribution £2880 topped up to £3600.

In the past I've left dividends uninvested to cover fees, but have obviously miscalculated.

Rather than have HL sell investments, with the accompanying charge, to pay monthly fees, is my only alternative to open a Fund and Share account & fund that with enough to cover monthly fees.

I suspect I know the answer, but would like confirmation. What I was hoping to avoid was another account closure charge should I decide to move away in future.

You can always leave the empty Fund & Share account with HL if you move the SIPP away?

I use my Fund & Share account only for paying the fees for my ISA and SIPP, as does OH. OH also uses the £25 per month DD for a certain current account, if the balance gets too high then OH just transfers the over balance back to current account. I use my debit card to add to my Fund & Share account, I’ll set up a DD next time I need one for a current account.

londoninvestor

GazHol wrote: »

You can always leave the empty Fund & Share account with HL if you move the SIPP away?.

The drawback with that unfortunately is this:

HL wrote:

There is a charge of £25 + VAT to close an HL Account. This will be applied automatically when the balance of your account falls below £50 (where no stock is held).

So you have £50 marooned in the account until you pay £25 to completely close it.

sjp999

Online debit card fee payment is currently open (well, it was 10 minutes ago).

badger09

sjp999 wrote: »

Online debit card fee payment is currently open (well, it was 10 minutes ago).

Thanks sjp999

I have a 'stay of execution' as my SMT div 30/11/18 will more than cover this month's fees.

I'll diarise the same the time next month:)