HL SIPP administration
etienneg
Posts: 467 Forumite
So, a non-earner contributes £2880 to a HL SIPP and they claim a tax refund of £720, making £3600. You need to leave a balance of £1000 to avoid the account being closed (at significant expense!) so you withdraw (as UFPLS) £2600. In the first year this means posting off a form asking for a quotation (or whatever it's called), then posting back the signed withdrawal form.
Repeat in the second tax year, except that you can now withdraw £3600. Do you have to go through the same laborious postal process again, or is there a way of doing it online?
Also, is the tax code that they will use shown anywhere in your online account?
Repeat in the second tax year, except that you can now withdraw £3600. Do you have to go through the same laborious postal process again, or is there a way of doing it online?
Also, is the tax code that they will use shown anywhere in your online account?
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Comments
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Alternatively, use a stakeholder pension and exit charges are not an issue and the first three times you can use small pots rules (unless you have already used small pots rules).I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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When an income payment is made they send a secure message which you can read when logged into your account. This details the amount of the payment and the tax deducted if any as well as the tax code used.
As far as I know you will have to fill in a paper form each time you take a UFPLS.0 -
I believe the £295 + VAT fee only applies once you go into drawdown and start to take a regular income. The platform incurs additional costs as they are essentially providing a PAYE service to you, HMRC reporting, production of P60s etc and it is this that the fee is designed to discourage. If you just close a SIPP you'll only pay the standard £25 + VAT closure fee, you probably still don't want to pay it but it's not as bad as you thinkYou need to leave a balance of £1000 to avoid the account being closed (at significant expense!)0 -
Alternatively, use a stakeholder pension and exit charges are not an issue and the first three times you can use small pots rules (unless you have already used small pots rules).
Unless I've misunderstood, the 12-month rule (see https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm063500#IDAKBJBC) means that once 12 months has elapsed since the first small pot payment you can no longer use this method of withdrawal. So, in the circumstances the OP describes, he'll only be able to use the small pots rules at most twice (the third withdrawal will definitely be more than 12 months after the first).0 -
Unless I've misunderstood, the 12-month rule (see https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm063500#IDAKBJBC) means that once 12 months has elapsed since the first small pot payment you can no longer use this method of withdrawal. So, in the circumstances the OP describes, he'll only be able to use the small pots rules at most twice (the third withdrawal will definitely be more than 12 months after the first).
The 12 month rule applies to trivial pensions. Not small pots. Trivaility now only applies to DB schemes. Not DC. A 2015 change
Main advantage of stakeholder though is prefunding of tax relief (so no wait for that to arrive) and no entry or exit charges. So, you can do the £3600 each time and leave nothing behind.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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