SIPP or not

Alan2020

InvesterJones said:

Alan2020 said:

bucklb said:

1) 57

2) I happily use ii, but sites like monevator give prices & wiser feedback

3) Any money you pay in to a SIPP gets boosted by 25% (after 6 ish weeks) that compensates for 20% tax most people pay.  If you pay tax at a higher rate you can claim the extra tax back from HMRC (normally a quick letter to state the numbers; I don't think it is automatic (or I never risked it anyway))

4) It'll be 57 from 4/2028. Thereafter I believe it sets as 10 years pre-state pension age (so if state pension age rises, so will the age you can access your SIPP)

Thank you so much for your help.
Is there a particular form to fill as a higher rate tax payer or just a generic letter would do.
I will give ii a good look, thank you!

If it's under about 10k you can just ring them. Above that you can either write with proof of the amount paid in, or there's now an online form (I can't remember the URL) which you can use to let them know and submit proof.

Thank you, yes under 10k

Alan2020

bucklb said:

Alan2020 said:

bucklb said:

1) 57

2) I happily use ii, but sites like monevator give prices & wiser feedback

3) Any money you pay in to a SIPP gets boosted by 25% (after 6 ish weeks) that compensates for 20% tax most people pay.  If you pay tax at a higher rate you can claim the extra tax back from HMRC (normally a quick letter to state the numbers; I don't think it is automatic (or I never risked it anyway))

4) It'll be 57 from 4/2028. Thereafter I believe it sets as 10 years pre-state pension age (so if state pension age rises, so will the age you can access your SIPP)

Thank you so much for your help.
Is there a particular form to fill as a higher rate tax payer or just a generic letter would do.
I will give ii a good look, thank you!

Once upon a time you could ring and get it sorted, but certainly not lately and even then I gather it takes quite a while for a call to be answered. Last few times I just wrote, specifying my NI number and details of what had been paid in to the SIPP and that I was due tax back as a higher rate taxpayer.  It's worth including details of the SIPP and the contributions (via a screen grab) in the letter, rather than waiting to be possibly asked for evidence.

I did find that it helped to clearly specify that I (and my employer) paid in to a company pension and that the SIPP payments were separate (and nett) payments. HMRC sometimes seemed to struggle with the idea that someone could do both and needed it pointed out.

I used to specify that I'd prefer any refund be as a direct payment; by default they seemed to want to amend the tax code rather than refund directly

Thank you for the pointers, will do so and thanks for the tip on refunding 

Dazed_and_C0nfused

Alan2020 said:

bucklb said:

Alan2020 said:

bucklb said:

1) 57

2) I happily use ii, but sites like monevator give prices & wiser feedback

3) Any money you pay in to a SIPP gets boosted by 25% (after 6 ish weeks) that compensates for 20% tax most people pay.  If you pay tax at a higher rate you can claim the extra tax back from HMRC (normally a quick letter to state the numbers; I don't think it is automatic (or I never risked it anyway))

4) It'll be 57 from 4/2028. Thereafter I believe it sets as 10 years pre-state pension age (so if state pension age rises, so will the age you can access your SIPP)

Thank you so much for your help.
Is there a particular form to fill as a higher rate tax payer or just a generic letter would do.
I will give ii a good look, thank you!

Once upon a time you could ring and get it sorted, but certainly not lately and even then I gather it takes quite a while for a call to be answered. Last few times I just wrote, specifying my NI number and details of what had been paid in to the SIPP and that I was due tax back as a higher rate taxpayer.  It's worth including details of the SIPP and the contributions (via a screen grab) in the letter, rather than waiting to be possibly asked for evidence.

I did find that it helped to clearly specify that I (and my employer) paid in to a company pension and that the SIPP payments were separate (and nett) payments. HMRC sometimes seemed to struggle with the idea that someone could do both and needed it pointed out.

I used to specify that I'd prefer any refund be as a direct payment; by default they seemed to want to amend the tax code rather than refund directly

Thank you for the pointers, will do so and thanks for the tip on refunding 

If you notify HMRC during the tax year they will normally try and give any tax relief due via a tax code adjustment.

But once the tax year has ended that isn't possible so any refund due would come back to you once they have reviewed the tax year the contribution was paid in.

The above assumes you don't need to compete a tax return.