The Lemon Fool

Morning all

When calculating total amount paid into a SIPP, how do you deal with tax relief payments that fall into the next tax year? If I contribute to my HL SIPP today, I wont get the tax relief for about 6 weeks ie after 6th April. Does that fall into the next financial years contribution?

Thank you!

Alan

It's my understanding, that with very few exceptions, "tax" events are linked with the time of the event.

I.E you pay into your SIPP. This engenders a tax relief that the pension scheme will claim and possibly one that you may claim. Historic tax may be corrected for a number of years (three I think) with ease or for longer if it is tax that you should have paid.

Personally I'd recommend doing things earlier in future if possible. That may not be possible if you needed to pay a bonus into the pension.

I'd SERIOUSLY avoid making payments days before the tax year end, as any delay in processing the payment may push things into the next tax year.

Urbandreamer wrote:It's my understanding, that with very few exceptions, "tax" events are linked with the time of the event.

I.E you pay into your SIPP. This engenders a tax relief that the pension scheme will claim and possibly one that you may claim. Historic tax may be corrected for a number of years (three I think) with ease or for longer if it is tax that you should have paid.

Personally I'd recommend doing things earlier in future if possible. That may not be possible if you needed to pay a bonus into the pension.

I'd SERIOUSLY avoid making payments days before the tax year end, as any delay in processing the payment may push things into the next tax year.

Thank you, very helpful. I thought that might be the case.

Alan7878 wrote:Morning all

When calculating total amount paid into a SIPP, how do you deal with tax relief payments that fall into the next tax year? If I contribute to my HL SIPP today, I wont get the tax relief for about 6 weeks ie after 6th April. Does that fall into the next financial years contribution?

Thank you!

Alan

The tax relief is treated as a contribution simultaneously with your payment into your pension: the date that HL actually credits the tax relief to your account doesn't matter for these purposes.

To set your mind at rest, you should get an annual statement from HL explicitly stating the gross SIPP contribution for the tax year.

I see with my HL contributions the tax relief is applied at time of contribution but doesn't get credited to my account until the following month or so depending on contribution date. They publish details so you can download the timetable - bottom of this page. https://www.hl.co.uk/pensions/tax-relief