How do I open multiple SIPPs with Hargreaves Lansdowne

DBdoobydoo

I am past state retirement age still working part time & as I am a higher rate tax payer I am paying into a SIPP to wash away tax & just holding cash in anticipation of drawing down in a couple of years. I have £20K in cash as I only started paying into a SIPP last tax year & when I enquired a few months ago about taking some money out of the SIPP realised that it would have been beneficial to actually have 2 x £10K SIPPs so I could take advantage of the small pot rule & not trigger MPAA. Apparently HL will split a SIPP into two smaller SIPPs for just this reason. https://forums.moneysavingexpert.com/discussion/6223311/taking-money-out-of-sipp-without-triggering-mpaa#latest
I now only have a couple of weeks to pay another £16K into a SIPP before the end of this tax year & was about to just pay it into my existing HL SIPP but it occurred to me that it might be better for future flexibility to create two new SIPPs putting £8K into each.
I've had a look in my HL account & cannot see how to create multiple SIPPs in the same account. Does this mean that I just need to open two new accounts with HL? I know that I can call HL later but it's 07:00 & it would save time hanging on hold if anyone knows the answer.

Croeso69

DBdoobydoo said:

I am past state retirement age still working part time & as I am a higher rate tax payer I am paying into a SIPP to wash away tax & just holding cash in anticipation of drawing down in a couple of years. I have £20K in cash as I only started paying into a SIPP last tax year & when I enquired a few months ago about taking some money out of the SIPP realised that it would have been beneficial to actually have 2 x £10K SIPPs so I could take advantage of the small pot rule & not trigger MPAA. Apparently HL will split a SIPP into two smaller SIPPs for just this reason. https://forums.moneysavingexpert.com/discussion/6223311/taking-money-out-of-sipp-without-triggering-mpaa#latest
I now only have a couple of weeks to pay another £16K into a SIPP before the end of this tax year & was about to just pay it into my existing HL SIPP but it occurred to me that it might be better for future flexibility to create two new SIPPs putting £8K into each.
I've had a look in my HL account & cannot see how to create multiple SIPPs in the same account. Does this mean that I just need to open two new accounts with HL? I know that I can call HL later but it's 07:00 & it would save time hanging on hold if anyone knows the answer.

You only need one SIPP.

When you want to take a small pot of £10,000 just drop them a message telling them this. After a quick phone call they will send you the forms required.

You then get tax free cash of £2,500 plus a net £6,000 (of £7,500 taxed at BR rate 20%) into yoyur bank account as a small pot and your SIPP will be £10,000 lighter.

Done this myself, once.

Repeat twice for the maximum of three small pots. This is something I am leaving for the future.

Costabit

DBdoobydoo said:

I now only have a couple of weeks to pay another £16K into a SIPP before the end of this tax year & was about to just pay it into my existing HL SIPP but it occurred to me that it might be better for future flexibility to create two new SIPPs putting £8K into each.

Lots to discuss in your whole post, but for starters
If you are trying to take advantage of the small pots rule rule, then by putting £8K in will have a tax uplift to £10K and hopefully some small investment growth, meaning it won’t be a “small pot” for long.

DBdoobydoo

Croeso69 said:

DBdoobydoo said:

I am past state retirement age still working part time & as I am a higher rate tax payer I am paying into a SIPP to wash away tax & just holding cash in anticipation of drawing down in a couple of years. I have £20K in cash as I only started paying into a SIPP last tax year & when I enquired a few months ago about taking some money out of the SIPP realised that it would have been beneficial to actually have 2 x £10K SIPPs so I could take advantage of the small pot rule & not trigger MPAA. Apparently HL will split a SIPP into two smaller SIPPs for just this reason. https://forums.moneysavingexpert.com/discussion/6223311/taking-money-out-of-sipp-without-triggering-mpaa#latest
I now only have a couple of weeks to pay another £16K into a SIPP before the end of this tax year & was about to just pay it into my existing HL SIPP but it occurred to me that it might be better for future flexibility to create two new SIPPs putting £8K into each.
I've had a look in my HL account & cannot see how to create multiple SIPPs in the same account. Does this mean that I just need to open two new accounts with HL? I know that I can call HL later but it's 07:00 & it would save time hanging on hold if anyone knows the answer.

You only need one SIPP.

When you want to take a small pot of £10,000 just drop them a message telling them this. After a quick phone call they will send you the forms required.

You then get tax free cash of £2,500 plus a net £6,000 (of £7,500 taxed at BR rate 20%) into yoyur bank account as a small pot and your SIPP will be £10,000 lighter.

Done this myself, once.

Repeat twice for the maximum of three small pots. This is something I am leaving for the future.

Brilliant! That was exactly what I needed to know. I can just crack on & add to my existing SIPP. Thanks a lot.

Croeso69

DBdoobydoo said:

Croeso69 said:

DBdoobydoo said:

I am past state retirement age still working part time & as I am a higher rate tax payer I am paying into a SIPP to wash away tax & just holding cash in anticipation of drawing down in a couple of years. I have £20K in cash as I only started paying into a SIPP last tax year & when I enquired a few months ago about taking some money out of the SIPP realised that it would have been beneficial to actually have 2 x £10K SIPPs so I could take advantage of the small pot rule & not trigger MPAA. Apparently HL will split a SIPP into two smaller SIPPs for just this reason. https://forums.moneysavingexpert.com/discussion/6223311/taking-money-out-of-sipp-without-triggering-mpaa#latest
I now only have a couple of weeks to pay another £16K into a SIPP before the end of this tax year & was about to just pay it into my existing HL SIPP but it occurred to me that it might be better for future flexibility to create two new SIPPs putting £8K into each.
I've had a look in my HL account & cannot see how to create multiple SIPPs in the same account. Does this mean that I just need to open two new accounts with HL? I know that I can call HL later but it's 07:00 & it would save time hanging on hold if anyone knows the answer.

You only need one SIPP.

When you want to take a small pot of £10,000 just drop them a message telling them this. After a quick phone call they will send you the forms required.

You then get tax free cash of £2,500 plus a net £6,000 (of £7,500 taxed at BR rate 20%) into yoyur bank account as a small pot and your SIPP will be £10,000 lighter.

Done this myself, once.

Repeat twice for the maximum of three small pots. This is something I am leaving for the future.

Brilliant! That was exactly what I needed to know. I can just crack on & add to my existing SIPP. Thanks a lot.

This small pot creation works regardless of how big your SIPP is. As long as it is big enough for the amounts you want, obviously.

Albermarle

The alternative would be to open two or three new SIPPs with new providers .
This is what I have done as my main SIPP provider is not HL and the other providers seem unwilling to split off small pots from larger ones. 
I added £7.5K so I had a bit of leeway .

RetSol

If you want to follow @Albermarle's suggestion,  AJ Bell do not charge for drawdown so are a good alternative to HL.  

Marcon

RetSol said:

If you want to follow @Albermarle's suggestion,  AJ Bell do not charge for drawdown so are a good alternative to HL.  

Beware - it's not drawdown we're talking about here. It's small pots - and you have to take whole pot in one go, not use drawdown, to benefit from the small pot regime.

Albermarle

Yes - put in £7500 , wait for the tax relief to arrive -£1875.
Then at some point ( at least before it grows to more than £10K ) - request a withdrawal of all of it, specifically under the small pot rule. Due to the small amounts involved , better to stick to platforms who % charge . HL ; Fidelity; AJ Bell etc and who allow small pot withdrawals ( Vanguard do not apparently )

GunJack

I've just found this thread from a Google search and I appreciate it's a bit old....can anyone confirm if hl will still do this, i.e. create a small pot withdrawal from a single sipp?

FIREDreamer

GunJack said:

I've just found this thread from a Google search and I appreciate it's a bit old....can anyone confirm if hl will still do this, i.e. create a small pot withdrawal from a single sipp?

Yes, I did it last month.

The required form is here … https://www.hl.co.uk/__data/assets/pdf_file/0010/19864405/split-small-pots.pdf