1st April Pension Payments

Ibrahim5

I am retired and pay £2880 into a SIPP each year with Halifax which is brought up to £3600 with tax. I pay £240 on 1st day of each month. I spent a long time on the phone with them trying to work out which tax year the 1st April payment will fall into this year. Fed up, I asked them to move my payments to later in the month. My wife pays on the 20th of each month with a different SIPP provider and obviously has no problems. They say they can't change the date and can only take it on the 1st. Is that right? Does it matter which tax year it goes into? Will I have problems if the taxman says I have paid too much one tax year?

molerat

The new tax year starts on 6th April so 1st April is in the 20-21 tax year.  If you pay on 1st of the month what is the problem ?  There are only 12 x 1sts in a tax year.

Croeso69

molerat said:

The new tax year starts on 6th April so 1st April is in the 20-21 tax year.  If you pay on 1st of the month what is the problem ?  There are only 12 x 1sts in a tax year.

Probably worried that 1 April is the last working day in this tax year due to the Easter Bank Holiday weekend. It should credit the SIPP on April 1st so there should be no issue.

Ibrahim5

The payment comes from a different company sippdeal and then arrives at hsdl later. So 1s April payment will be in next tax year. So I say "look just take the April payment on 20th April and carry on forever on the 20th month. No problem ever again". Reply "no can do. Can only take 1st of each month."

Thrugelmir

The payment date is what counts. Not the date of receipt. 

Why will it take until the 6th to hit your bank account? 

The 1st will be the date that payments are run on. Hence why no further options. 

Ibrahim5

I am going off what I have been told by Halifax on the phone. Obviously that isn't always the best information. I don't want HMRC saying £3600 is the limit. You have overpaid. Penalty due. I also have to give my income to the student loans company. Pension payments are a deduction. Just trying to get paperwork in order. Not sure if I should be too bothered or not.

Ibrahim5

Money has always 'disappeared' in banking systems for days. You can't invest the money until it has been in your account for days. Not 'cleared' etc etc

Croeso69

Thrugelmir said:

The payment date is what counts. Not the date of receipt. 

Why will it take until the 6th to hit your bank account? 

The 1st will be the date that payments are run on. Hence why no further options. 

@Thrugelmir I think he is paying INTO a pension, not taking money out - hence the reference of £2,880 I think.

AlanP_2

Why not cancel the DD/SO and make a debit card payment last week of March?

Then set up new DD/SO with a "better" date.

Ibrahim5

Yes I am paying into a pension. They will only take direct debit payments on the first of the month.

AlanP_2

Use the same provider as your wife then from next year?