Do you use more than one platform?

NoMore

https://forums.moneysavingexpert.com/discussion/comment/82019229#Comment_82019229

Unfortunately because of the tax advantage of paying for fees from your Pension, you can't do this to cover other non-pension fees, so no a single platform cannot offer to pay the fees for all your accounts from your Pension alone.

Like JimJames, I keep my SIPP separate to ISA platform wise, precisely for this reason.

InvesterJones

https://forums.moneysavingexpert.com/discussion/comment/82019229#Comment_82019229

I don't know each platforms ins and outs, but I think it'd be quite difficult to use your SIPP to pay fees incurred by other account types - to cover the SIPP only fees should be fine if you take account of the fee-taking logic platforms provide.

jimjames

It is quite common to open a GIA solely to pay the fees for any other accounts you have with that broker. This is arguably the best approach when in life's accumulation phase.

Personally I disagree. Paying from SIPP seems best place when you're accumulating as you are getting tax relief so the effective cost of the fees is lower. £100 fee could be almost halved if you get maximum tax relief. Paying from GIA means you pay the full amount with no relief. I can understand once your SIPP is static and in drawdown that you're reducing the pot but even then you're paying from money that has tax relief added and not using your allowance.

sweeter_strudel

Hmmm, an interesting take Jim James.

I guess if I'm in accumulation mode my thinking is I want the £100 in the SIPP to make maximum gain for 2,3,5 years - or indeed 2,3,5 decades. And I'll fork out the £100 from my monthly salary.

This thread has given me another task for the To Do list though. Shift all SIPP fees to come from the SIPP account as I am switching into SKI-mode and am working out the higher rate tax band and how to stay below it while drawing down.

NoMore

https://forums.moneysavingexpert.com/discussion/comment/82021260#Comment_82021260

It doesn't matter if you are in accumulation or not, the fees have to be paid either way so why pay more in fees than you have to.

You could pay £100 fees outside of pension or instead pay £80 of that into a pension and get the tax relief to cover the £100 and still have £20 in your pocket. Doesn't affect your current investments in Pension at all.

Aminatidi

Got to admit the Lloyds Banking Group issues today did make me think of this thread a little.