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Advice on setting up a SIPP please


Boglet
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Hi all,

Looking for some advice on SIPPs. I recently moved comfortably into the higher rate tax band PAYE and would like some recommendations on how to set up my affairs to minimise tax.

Main thing is to just get below the higher rate tax threshold and not give these fuckers any more than I absolutely have to. I could live on 30k a year so 50k is no problem at all.

Salary sacrifice into company pension is not allowed so I want/need to set up a SIPP to stash the extra. As I understand it the company cannot salary sacrifice this into a SIPP for me I need to do it myself from taxed income, then claim the relevant tax back? I don’t really want to wait an entire year to do this, is it possible to do this as you go along?

Finally, I haven’t yet set up a SIPP – I understand a Hargreaves Lansdown and Vanguard are a couple of go-to providers, anyone got any pointers on either?

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man o' the year

6 months free and on going charges of £9-99 per month would likely mean cheaper at Interactive Investor. Do your own research.

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BurntBread
1 hour ago, Boglet said:

Hi all,

Looking for some advice on SIPPs. I recently moved comfortably into the higher rate tax band PAYE and would like some recommendations on how to set up my affairs to minimise tax.

Main thing is to just get below the higher rate tax threshold and not give these fuckers any more than I absolutely have to. I could live on 30k a year so 50k is no problem at all.

Salary sacrifice into company pension is not allowed so I want/need to set up a SIPP to stash the extra. As I understand it the company cannot salary sacrifice this into a SIPP for me I need to do it myself from taxed income, then claim the relevant tax back? I don’t really want to wait an entire year to do this, is it possible to do this as you go along?

Finally, I haven’t yet set up a SIPP – I understand a Hargreaves Lansdown and Vanguard are a couple of go-to providers, anyone got any pointers on either?

I use Hargreaves Lansdown, which is very straightforward. I set up an ordinary trading account first, then opened a SIPP with them. You can just pay in money from your bank account, and 6 weeks later, an extra 25% turns up in the SIPP, which is HL claiming back for you the basic rate tax you have paid. I don't know what happens with higher rate tax. I'm guessing you get some money back when you fill in your tax return, as there is a field about contributions to a SIPP ... but I'm not sure, as I only started this tax year.

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Frank Hovis
1 hour ago, BurntBread said:

I use Hargreaves Lansdown, which is very straightforward. I set up an ordinary trading account first, then opened a SIPP with them. You can just pay in money from your bank account, and 6 weeks later, an extra 25% turns up in the SIPP, which is HL claiming back for you the basic rate tax you have paid. I don't know what happens with higher rate tax. I'm guessing you get some money back when you fill in your tax return, as there is a field about contributions to a SIPP ... but I'm not sure, as I only started this tax year.

I'm also with them @Boglet but that's purely because I have been there so long I can't be bothered to move.  HL SIPP fees are relatively high so I woudl suggest your looking elsewhere.

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Aren’t HL facing possible hundreds of millions compo payout re Neil Woodford?

might be worth bearing in mind 

 

 

 

 

 

 

 

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I have an Isa and Sipp with AJ Bell.  They are easy to use and I think competitively priced.  You can hold the money as cash while you think what to do with it and trades are £9.95 to buy/sell for shares and investment trusts or less if you are a frequent trader.  They have a good range of things to invest in too.

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Thanks all.

Sounds like I get the 20% relief back automatically. Anyone know how the higher rate tax relief comes back? Do I have to claim it back in one lump at the end of the year or can I do it as I go along?

Anyway... I've been reading some news that the 40% tax relief might be for the chop... typical.

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AlfredTheLittle
2 minutes ago, Boglet said:

Thanks all.

Sounds like I get the 20% relief back automatically. Anyone know how the higher rate tax relief comes back? Do I have to claim it back in one lump at the end of the year or can I do it as I go along?

Anyway... I've been reading some news that the 40% tax relief might be for the chop... typical.

Claim it in your tax return if you do one, otherwise I'm sure there's a form for it. You never get the national insurance back though. Would be cheaper if you can persuade your employer to pay directly into your sipp, as both you and them would save NI

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Chewing Grass
17 minutes ago, Boglet said:

Anyway... I've been reading some news that the 40% tax relief might be for the chop... typical.

You have been let off for 12 months as Rishi made no mention of it today.

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Formerly
On 22/03/2021 at 14:29, janch said:

I have an Isa and Sipp with AJ Bell.  They are easy to use and I think competitively priced.  You can hold the money as cash while you think what to do with it and trades are £9.95 to buy/sell for shares and investment trusts or less if you are a frequent trader.  They have a good range of things to invest in too.

Do they charge platform fees on the cash held?

Fidelity may be worth a look for a non-fund based portfolio. Annual fee capped at £45 for exchange traded investments.

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Formerly
36 minutes ago, Formerly said:

Do they charge platform fees on the cash held?

Checked for myself and they don't. Kudos to them for the clarity of their fees & charges page.

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