SIPP & Pension guidance - IM Private Clients

[pingu393]

mjb1 said:

Jockman said:

Atlantis67 said:

My wife currently earns around 6k pa in employment income and 8k pa in dividends from her family’s business. As a result she uses her personal allowance and dividend allowance in order to pay no tax. Is she allowed to place 6k into a SIPP and claim basic rate tax relief or would it only be the lower amount that non-earners are allowed (£3.6k gross).

Many thanks!

Edited by Atlantis67 on Friday 24th February 22:22

£6k. So £4.8k plus £1.2k tax relief.

Only 2 posts in 13 years is pretty amazing.

This is useful to know - so you can effectively claim more in tax relief than you've paid in income tax (i.e. from the personal allowance range)?

Also, what interest rate does IM currently pay on cash held within a SIPP (or an ISA for that matter)?

Yes and zero.

I have just taken advantage of this scheme. I will probably pay less than £1000 in income tax, but I have just put £10.4k into my pension pot. HMRC will add another £2.6k.

Now seems a good time to add to your investments, as things are on a dip.

Edited by pingu393 on Tuesday 28th February 13:35

[chucklebutty]

Twice I've tried to get someone from IM to engage on pension advice in the last 2 weeks, a phone call and then the online 'get in touch' and no one has replied. They must know I'm an archetypical low net worth type of individual ;-)

[mikeiow]

chucklebutty said:

Twice I've tried to get someone from IM to engage on pension advice in the last 2 weeks, a phone call and then the online 'get in touch' and no one has replied. They must know I'm an archetypical low net worth type of individual ;-)

Firstly…they don’t give advice, only guidance!
Second: have you emailed Nik? Perhaps slipped past: try him again!

[chucklebutty]

mikeiow said:

chucklebutty said:

Twice I've tried to get someone from IM to engage on pension advice in the last 2 weeks, a phone call and then the online 'get in touch' and no one has replied. They must know I'm an archetypical low net worth type of individual ;-)

Firstly…they don’t give advice, only guidance!
Second: have you emailed Nik? Perhaps slipped past: try him again!

Not sure I said I wanted investment advice and if they take your details down on a phone call and say they’ll call back but don’t then I’ll never know what guidance vs advice they do give.

I do not know who Nik is and haven’t emailed him. Thanks for the reply on their behalf. I did want to try to use them.

[PM3]

chucklebutty said:

mikeiow said:

chucklebutty said:

Twice I've tried to get someone from IM to engage on pension advice in the last 2 weeks, a phone call and then the online 'get in touch' and no one has replied. They must know I'm an archetypical low net worth type of individual ;-)

Firstly…they don’t give advice, only guidance!
Second: have you emailed Nik? Perhaps slipped past: try him again!

Not sure I said I wanted investment advice and if they take your details down on a phone call and say they’ll call back but don’t then I’ll never know what guidance vs advice they do give.

I do not know who Nik is and haven’t emailed him. Thanks for the reply on their behalf. I did want to try to use them.

Nik (who posts under Intelligent Money) runs Private Clients ([e-mail])

You don't have to be high net worth , clearly if I am anything to go by ...they are genuinely decent down to earth people considering the sector norm. when I joined up I chatted to the CEO ( Julian )
Hands down I can tell you the CEO of Aviva or Mercer who I also have holdings with wouldn't "lower" their assistant let alone themselves to talk to someone like me !

[chucklebutty]

Thank you PM3. I’ll drop Nik a line tomorrow.

I’ve taken advice elsewhere but I’ve always heard good things about IM and had really wanted to give them a go.

I’ve got some consolation and am now self employed so my current pots are not efficiently managed across 3 platforms. Just after ideas to simplify and keep contributing. Things that should be easy.

[LastPoster]

Hi IM team

Asking this question here as I'm possibly not the only one thinking about this

I'd like to make a pension contribution before the end of the FY into my IM scheme, I'm hoping to do this as late as possible to ensure that I offset all of my income taxed at 40% but don't end up offsetting some that would have only been taxed at 20%. My income for March isn't finalised yet (long story) so I'm unlikely to know much before the end of the month.

Whats the deadline for setting up a one off DD for April 1st, and will it definitely count as contribution this year. Previously I have found the DD always goes a couple of days after the due date? Missing the deadline would cost me about £750!

It doesn't help that April 1st is a Saturday so a couple of banking days lost there.

If it's possible that it won't go over in time, I will just have to take my chances and over estimate slightly and make the DD on March 15th

[pingu393]

LastPoster said:

Hi IM team

Asking this question here as I'm possibly not the only one thinking about this

I'd like to make a pension contribution before the end of the FY into my IM scheme, I'm hoping to do this as late as possible to ensure that I offset all of my income taxed at 40% but don't end up offsetting some that would have only been taxed at 20%. My income for March isn't finalised yet (long story) so I'm unlikely to know much before the end of the month.

Whats the deadline for setting up a one off DD for April 1st, and will it definitely count as contribution this year. Previously I have found the DD always goes a couple of days after the due date? Missing the deadline would cost me about £750!

It doesn't help that April 1st is a Saturday so a couple of banking days lost there.

If it's possible that it won't go over in time, I will just have to take my chances and over estimate slightly and make the DD on March 15th

I'm not IM, but if it is over £5k, you can do an immediate transfer using the bank transfer method.

Complete the contribution section in your pension wallet, get the reference number, and transfer the money using the supplied reference number. I did it in less than an hour a couple of days ago.

[Intelligent Money]

chucklebutty said:

Thank you PM3. I’ll drop Nik a line tomorrow.

I’ve taken advice elsewhere but I’ve always heard good things about IM and had really wanted to give them a go.

I’ve got some consolation and am now self employed so my current pots are not efficiently managed across 3 platforms. Just after ideas to simplify and keep contributing. Things that should be easy.

Hi chucklebutty

Apologies if I missed your contact request. Just drop me a mail at [e-mail] and I'll be happy to help

Cheers

Nik

[Intelligent Money]

LastPoster said:

Hi IM team

Asking this question here as I'm possibly not the only one thinking about this

I'd like to make a pension contribution before the end of the FY into my IM scheme, I'm hoping to do this as late as possible to ensure that I offset all of my income taxed at 40% but don't end up offsetting some that would have only been taxed at 20%. My income for March isn't finalised yet (long story) so I'm unlikely to know much before the end of the month.

Whats the deadline for setting up a one off DD for April 1st, and will it definitely count as contribution this year. Previously I have found the DD always goes a couple of days after the due date? Missing the deadline would cost me about £750!

It doesn't help that April 1st is a Saturday so a couple of banking days lost there.

If it's possible that it won't go over in time, I will just have to take my chances and over estimate slightly and make the DD on March 15th

Hi Lastposter

To make the 1st April d/d it would ideally be set up by 24th March. As long as it it is correctly set up and we "call the funds" for the 1st it will fall into the 22/23 tax year.

You can also make a single contribution by bank transfer if it is over £5k. That usually goes same day if the bank doesn't hold the funds.

Cheers

Nik

[Mr Pointy]

Doesn't he have until April 5th to get the payment to IM?

[LastPoster]

Intelligent Money said:

LastPoster said:

Hi IM team

Asking this question here as I'm possibly not the only one thinking about this

I'd like to make a pension contribution before the end of the FY into my IM scheme, I'm hoping to do this as late as possible to ensure that I offset all of my income taxed at 40% but don't end up offsetting some that would have only been taxed at 20%. My income for March isn't finalised yet (long story) so I'm unlikely to know much before the end of the month.

Whats the deadline for setting up a one off DD for April 1st, and will it definitely count as contribution this year. Previously I have found the DD always goes a couple of days after the due date? Missing the deadline would cost me about £750!

It doesn't help that April 1st is a Saturday so a couple of banking days lost there.

If it's possible that it won't go over in time, I will just have to take my chances and over estimate slightly and make the DD on March 15th

Hi Lastposter

To make the 1st April d/d it would ideally be set up by 24th March. As long as it it is correctly set up and we "call the funds" for the 1st it will fall into the 22/23 tax year.

You can also make a single contribution by bank transfer if it is over £5k. That usually goes same day if the bank doesn't hold the funds.

Cheers

Nik

Thanks Nik (and Pingu above)

I knew the bank transfer had been changed but forgot it was still an option above £5k

[s3pc1989]

Question for assembled wisdom of PH Finance Forum and the IM team perhaps.

I left the corporate world in early 2022 and have been working in a part time job (low stress and outdoorsy - but relatively lowly paid....) and also recently took a small drawdown from one of my pensions which wasn't taxed as I am below the 12,500 tax free threshold. Subsequently HMRC sent me a tax coding showing that all of my 12K5 tax free allowance will be applied to my part time job and zero allowance for any drawdowns. I have made another drawdown this week (which will take my total income - work and pension - for the tax year to 12,480) but noticed that the pensions company have deducted tax at 20%.

The question is, what is the easiest way to reclaim this tax? I prefer not to go to the hassle of self assessment....

Thanks!

[Carbon Sasquatch]

s3pc1989 said:

The question is, what is the easiest way to reclaim this tax? I prefer not to go to the hassle of self assessment....

https://www.gov.uk/claim-tax-refund

and then make sure you're projections are accurate for 23/24 - https://www.tax.service.gov.uk/check-income-tax/in...

[Countdown]

Possibly a silly question but......

I can understand the logic of paying into a pension if you're a 40% taxpayer now but will be a 20% taxpayer in retirement. However if you're a 40% taxpayer now and will also be a 40% taxpayer in retirement would you not be better off putting the money into an ISA? Whilst you don't get any tax relief now equally you won't have to pay tax on it when you withdraw the money at a later date.

Having said that I suppose

- you can withdraw at least 25% tax free
- a SIPP avoids IHT

Are there any other benefits of a SIPP over an ISA?

[nebpor]

You can only put 20k into your ISA, with no tax relief at the time of deposit. If you are higher rate, you can put 40k in your SIPP, which the Gov then adds 40% to (effectively), so when you pay that 40% later, it’s 40% of what you put in and what the gov put in

[Mazinbrum]

Countdown said:

Possibly a silly question but......

I can understand the logic of paying into a pension if you're a 40% taxpayer now but will be a 20% taxpayer in retirement. However if you're a 40% taxpayer now and will also be a 40% taxpayer in retirement would you not be better off putting the money into an ISA? Whilst you don't get any tax relief now equally you won't have to pay tax on it when you withdraw the money at a later date.

Having said that I suppose

- you can withdraw at least 25% tax free
- a SIPP avoids IHT

Are there any other benefits of a SIPP over an ISA?

You get growth on the extra 20%, well you used to until recently…

[Carbon Sasquatch]

Retire early and get £12,570 per year of it at zero tax

[SunsetZed]

Countdown said:

Possibly a silly question but......

I can understand the logic of paying into a pension if you're a 40% taxpayer now but will be a 20% taxpayer in retirement. However if you're a 40% taxpayer now and will also be a 40% taxpayer in retirement would you not be better off putting the money into an ISA? Whilst you don't get any tax relief now equally you won't have to pay tax on it when you withdraw the money at a later date.

Having said that I suppose

- you can withdraw at least 25% tax free
- a SIPP avoids IHT

Are there any other benefits of a SIPP over an ISA?

It can help reduce your take home which can increase your eligibility for childcare support and help avoid the 60% tax rate between 100-125k when the personal allowance is reduced.

[Sim75]

I converted the vast majority of my pension to cash in early 2022 to prevent any catastrophies when the markets were in freefall.
Bulk is in Ruffer anyway, so a low risk fund granted (I'm very risk adverse when it comes to pensions)
It performed very well over lockdown when others tanked.


Anyway, good time to start switching from cash back over to funds?