SIPP

macmuck

Hi,
My only income is a state pension with full entitlement.
Would I qualify at HL For a SiPP with all tax relief benefits?
Also, how would this impact a family SIPP if I choose this method?
Thanks
Mal

BoGoF

Assuming you are under 75 you can contribute the same amount as anyone with no relevant earnings a net amount of £2880 and obtain tax relief of £720.

No idea what a family SIPP is but the above is the maximum you can contribute in a tax year.

ColdIron

macmuck said:

Also, how would this impact a family SIPP if I choose this method?

SIPP = Self-Invested Personal Pension

where_are_we

Macmuck -- You have just over 4 weeks (in this tax year 23-24) to open a SIPP at HL, fund it with £2880 and keep it in cash. You have to be quick. It would have been ideal to withdraw an amount that takes you up to your personal allowance from this SIPP in this tax year but I do not think you have time - ask Hl on the phone. Then after April 6 (in next tax year 24-25) fund another £2880. HMRC will add £720 after about 6 weeks. Then make a withdrawal up to your personal allowance. 

badger09

where_are_we said:

Macmuck -- You have just over 4 weeks (in this tax year 23-24) to open a SIPP at HL, fund it with £2880 and keep it in cash. You have to be quick. It would have been ideal to withdraw an amount that takes you up to your personal allowance from this SIPP in this tax year but I do not think you have time - ask Hl on the phone. Then after April 6 (in next tax year 24-25) fund another £2880. HMRC will add £720 after about 6 weeks. Then make a withdrawal up to your personal allowance. 

I funded my HL SIPP last night with £2880 by debit card. As HL ‘prefund’, that money was available to invest immediately. I assume it would not be available to withdraw until it had cleared. 

However, the tax relief will not be added until 21st April so OP would not be able to withdraw that in the current tax year. 

where_are_we

I did say Macmuck had probably left it too late for a withdrawal in this tax year. However he would not want to withdraw the tax relief part of his contribution. If he has a full state pension this could be £10600 for 23-24. He would have just under £2000 headroom so would not need to withdraw the tax relief part yet to be awarded. The question is - would he be able to withdraw part of his contribution before the tax relief was actually added? I presume this isn`t allowed.

JakeHyde

I'm doing a last minute Larry, and looking to go with InvestEngine on the 5th!?!? 😅 Why is everyone going with HL, are they the most popular for some reason?

Albermarle

JakeHyde said:

I'm doing a last minute Larry, and looking to go with InvestEngine on the 5th!?!? 😅 Why is everyone going with HL, are they the most popular for some reason?

HL are established and large, with a good reputation for customer service, which matters more when withdrawing than adding.
Their charges are higher but for these types of amounts it is not a big issue.

Investengine are new(ish) so not fully tested, but should be OK and cheap for you. 

Rich1976

JakeHyde said:

I'm doing a last minute Larry, and looking to go with InvestEngine on the 5th!?!? 😅 Why is everyone going with HL, are they the most popular for some reason?

HL are the biggest with just under 2 million customers and a 42% market share. They are very good and user friendly in my experience . Charges can be an issue but then so can providers with lousy customer service.

dunstonh

Rich1976 said:

JakeHyde said:

I'm doing a last minute Larry, and looking to go with InvestEngine on the 5th!?!? 😅 Why is everyone going with HL, are they the most popular for some reason?

HL are the biggest with just under 2 million customers and a 42% market share. They are very good and user friendly in my experience . Charges can be an issue but then so can providers with lousy customer service.

Just adding the caveat that they are the biggest DIY provider.  They are not the biggest overall if you include the platforms that IFAs use.  I believe Fidelity and Aegon are bigger.   This also goes to show that being big doesn't mean best as anyone who has used Aegon will know.

zagfles

Albermarle said:

JakeHyde said:

I'm doing a last minute Larry, and looking to go with InvestEngine on the 5th!?!? 😅 Why is everyone going with HL, are they the most popular for some reason?

HL are established and large, with a good reputation for customer service, which matters more when withdrawing than adding.
Their charges are higher but for these types of amounts it is not a big issue.

Investengine are new(ish) so not fully tested, but should be OK and cheap for you. 

HL's charges are zero if you hold cash, and you get about 3.5% interest, so for those who just want to play the £2880 recycling game they're probably one of the better options