Junior SIPP Management Charges

MikeJASB

I have opened a Junior SIPP with AJ Bell and funded it to the maximum for the current tax year (£2880/£3600). As far as I understand the provider does not automatically sell investment units to fund the management charges, so I am keeping a small cash balance to cover this. My question is whether I can pay in additional cash to cover the management charges, above the £3,600 annual investment limit to avoid the need to hold a balance from the original investment or having to trade in any investments? Thanks

Dazed_and_C0nfused

MikeJASB said:

I have opened a Junior SIPP with AJ Bell and funded it to the maximum for the current tax year (£2880/£3600). As far as I understand the provider does not automatically sell investment units to fund the management charges, so I am keeping a small cash balance to cover this. My question is whether I can pay in additional cash to cover the management charges, above the £3,600 annual investment limit to avoid the need to hold a balance from the original investment or having to trade in any investments? Thanks

How much does the person whose SIPP this is expect to earn in the current tax year?

Lowtrawler

MikeJASB said:

I have opened a Junior SIPP with AJ Bell and funded it to the maximum for the current tax year (£2880/£3600). As far as I understand the provider does not automatically sell investment units to fund the management charges, so I am keeping a small cash balance to cover this. My question is whether I can pay in additional cash to cover the management charges, above the £3,600 annual investment limit to avoid the need to hold a balance from the original investment or having to trade in any investments? Thanks

You can open a dealing account with AJ Bell and ask for the management charges to be deducted from there. You won't be able to put more into the SIPP unless there are relevant earnings to cover it.

NoMore

IDazed_and_C0nfused said:

MikeJASB said:

I have opened a Junior SIPP with AJ Bell and funded it to the maximum for the current tax year (£2880/£3600). As far as I understand the provider does not automatically sell investment units to fund the management charges, so I am keeping a small cash balance to cover this. My question is whether I can pay in additional cash to cover the management charges, above the £3,600 annual investment limit to avoid the need to hold a balance from the original investment or having to trade in any investments? Thanks

How much does the person whose SIPP this is expect to earn in the current tax year?

It’s a junior sipp so although you are correct there’s no age limit on earning income, I think it’s safe to assume it will be a non earner. 

In which case the answer is no they can’t put more cash into the sipp above the tax relief limit. Or they could but it would cause problems with returning tax relief etc. 

MX5huggy

Move it to Fidelity and don’t pay any management fees. https://www.fidelity.co.uk/junior-sipp/fees-and-charges/#tab-link