Flexi Drawdown Queries

zagfles

Thanks for the update, which is very useful information about the practicalities which I suspect most of the regulars here weren't aware of (I certainly wasn't).

ArchBair

Sue58, that's really useful information for anybody else going down the UFPLS route for the first time especially if there SIPP is with Fidelity. This is a very practical way of arranging your first payment. I'm sure other platforms must have online PAYE reference numbers so maybe its worth asking the question if they will also do this?

Dazed_and_confused

I'm sure other platforms must have online PAYE reference numbers so maybe its worth asking the question if they will also do this?

As they are effectively an "employer" operating PAYE on the taxable element o f any pension withdrawal I would hope so!

Don't think anyone has ever reported any issues with HMRC not knowing about taxable withdrawals, it is usually the case though that a tax code cannot be issued until after the first payment i.e. when the pension company have first notified HMRC of the taxable pension income.

The op had somehow circumvented this, maybe it's something Fidelity have managed to arrange?

No doubt others will try it and hopefully report back.

StellaN

Sue58 wrote: »

I must admit that Fidelity made this all very easy for me especially as they make no charges for drawdown. So I'm very pleased with the way they have handled this on my behalf.

It's nice to hear someone who's pleased with Fidelity because, quite rightly, they get some negative views on their platform/software. For me personally, as I only hold IT's in my SIPP portfolio then the £45 cap on charges together with no exit fees and no drawdown charges is suitable for me. I only make lump sum investments so have limited trades so the overall charges are great. Hopefully when the platform's new software is finished it should be even better but it already does what I personally need it to do. Not right for everybody though.

Sue58

StellaN wrote: »

It's nice to hear someone who's pleased with Fidelity because, quite rightly, they get some negative views on their platform/software. For me personally, as I only hold IT's in my SIPP portfolio then the £45 cap on charges together with no exit fees and no drawdown charges is suitable for me. I only make lump sum investments so have limited trades so the overall charges are great. Hopefully when the platform's new software is finished it should be even better but it already does what I personally need it to do. Not right for everybody though.

Yes, I have to admit their SIPP retirement specialists were very thorough. The initial telephone briefing for the drawdown options lasted around 30 minutes and the advisor went through flexi-drawdown, annuities and UFPLS. He answered all of my queries/questions and it was all then put in writing with the appropriate forms. At the time I was still undecided on whether to go for flexi-drawdown or UFPLS so he sent me illustration forms for both options. As I mentioned previously the 'icing on the cake' was his suggestion to call HMRC to give them Fidelity's online PAYE reference number so they could send through an appropriate tax code before payment.