Tax relief on SIPP fees

Cee_Kaybe

I've googled and can't find the answer to this. 

I have a SIPP with Interactive Investor. I make monthly, after tax, contributions to this from my personal bank account. They also charge me a separate £19.99 for fees a month and this comes out of the same bank account as the contributions, although at a different day of the month. 

I know I get tax relief for the personal contributions but what about the separate fees?  

It 'feels' like I should be able to get tax relief as I would be able to if they took the fees from contributions...but I can't find anything about it.

dunstonh

I know I get tax relief for the personal contributions but what about the separate fees?  

Only if the fees are taken off within the pension (which is how most providers/platforms do it).   Check II's options to see if you can have the charges collected within the pension.   

MX5huggy

Pay them from the cash balance on your account:-

How are SIPP charges paid?

The easiest way to pay is by monthly direct debit. You can set this up in your online account.

Alternatively the charges can be taken from any cash balance on your account.

Cee_Kaybe

I just checked ii. They call it a 'subscription' and the only option I can see is to pay it by direct debit....which means I can't claim tax relief on it.

I did spot a cheaper monthly subscription (£12.99 instead on £19.99) so that saves me £84 a year which isn't bad.

Notepad_Phil

Is there a means for you to delete the direct debit that pays the fees?

I'm not sure how exactly I set this up as I've been with them for many years now, but I don't have a DD for the 'subscription' and instead my SIPP regular contribution amount has been set up so that it covers the fees that are taken from my SIPP cash balance.

A potential problem you may face is that I remember reading somewhere on an ii webpage in the past that ii would take the fees from a non-SIPP cash pot if you had other non-SIPP accounts. Fortunately I only hold a SIPP with them, but if you have an ISA or a Trading Account then you may find that the fees are taken from one of those accounts - thinking about it, it would probably be a Trading Account as people might be very unhappy if they took cash from an S&S ISA.

Cee_Kaybe

Notepad_Phil said:

Is there a means for you to delete the direct debit that pays the fees?

I'm not sure how exactly I set this up as I've been with them for many years now, but I don't have a DD for the 'subscription' and instead my SIPP regular contribution amount has been set up so that it covers the fees that are taken from my SIPP cash balance.

A potential problem you may face is that I remember reading somewhere on an ii webpage in the past that ii would take the fees from a non-SIPP cash pot if you had other non-SIPP accounts. Fortunately I only hold a SIPP with them, but if you have an ISA or a Trading Account then you may find that the fees are taken from one of those accounts - thinking about it, it would probably be a Trading Account as people might be very unhappy if they took cash from an S&S ISA.

Thanks so much, I just messaged and they confirmed I can cancel the separate fee Direct Debit and they will take the fees from the GBP balance.