HL SIPP not receiving any tax relief

squirrelpie

ColdIron said:

They'll pay 3.51% AER while you're waiting

On the tax that's not in your account?

squirrelpie

Rich1976 said:

squirrelpie said:

It seems that HL's system is designed to keep the tax refund out of your hands for as long as possible. Does anybody know why this should be so?

What makes you think that?

Other Sipp providers take 6 or 7 weeks from what I’ve seen. Presumably it is HMRC which dictates the timescale.

AIUI, HL decides what day they take the money from your account. HMRC decide what day they use as the cutoff for tax 'refunds'. HL decided to take the money one day after the cutoff when they could have taken it one day before. That's why I asked my question. I haven't the faintest idea about other SIPP providers or why they would take even longer - are they really so much more inefficient?.

ColdIron

squirrelpie said:

ColdIron said:

They'll pay 3.51% AER while you're waiting

On the tax that's not in your account?

There is no tax within a SIPP. But they will pay interest while you are waiting for the rebate. HL can do nothing until HMRC remit it and they are no different to other platforms in that respect

Dazed_and_C0nfused

ColdIron said:

squirrelpie said:

ColdIron said:

They'll pay 3.51% AER while you're waiting

On the tax that's not in your account?

There is no tax within a SIPP. But they will pay interest while you are waiting for the rebate. HL can do nothing until HMRC remit it and they are no different to other platforms in that respect

Isn't the point being made that there is no tax relief in the account.

The net contribution is made and could be invested or left to earn interest but the tax relief isn't going to be earning interest as it hasn't been credited.

But I do agree that they aren't much different to some other providers in this respect.

ColdIron

Dazed_and_C0nfused said:

ColdIron said:

squirrelpie said:

ColdIron said:

They'll pay 3.51% AER while you're waiting

On the tax that's not in your account?

There is no tax within a SIPP. But they will pay interest while you are waiting for the rebate. HL can do nothing until HMRC remit it and they are no different to other platforms in that respect

The net contribution is made and could be invested or left to earn interest but the tax relief isn't going to be earning interest as it hasn't been credited.

Few organisations will allow you to benefit from money that has not been credited. LISAs work in much the same way

squirrelpie said:

It seems that HL's system is designed to keep the tax refund out of your hands for as long as possible.

The point that I am making is that HL's systems are not designed with this goal in mind. They do pay interest on the balance which is about as much as they can do

Scrounger

They could take their regular payments on the 5th instead of the 7th (or even better let you specify the DD collection date).

Scrounger