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Payment of SIPP fees

Alaric
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Payment of SIPP fees

#106353

Postby Alaric » December 27th, 2017, 5:16 pm

The recent takeover of TD Direct by ii resulted in a change of SIPP provider and charging method.

Whilst TD Direct would take the fee from cash inside a SIPP, ii are offering to take it externally from a bank account. Why doesn't this count as an extra contribution into the SIPP?

gryffron
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Re: Payment of SIPP fees

#106359

Postby gryffron » December 27th, 2017, 5:36 pm

Because the fee is a charge to you for holding the SIPP, not a charge made to the SIPP directly. Most providers do this for ISAs too.

Gryff

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Re: Payment of SIPP fees

#106365

Postby JMN2 » December 27th, 2017, 6:07 pm

I believe Hargreaves Lansdown doesn't allow the SIPP fees from an external bank account.

UncleEbenezer
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Re: Payment of SIPP fees

#106392

Postby UncleEbenezer » December 27th, 2017, 10:05 pm

JMN2 wrote:I believe Hargreaves Lansdown doesn't allow the SIPP fees from an external bank account.

They do allow taking both SIPP and ISA fees from a Fund&Share account.

I do that for the ISA, to maximise the tax-sheltered pot. But not for the SIPP: that being a taxable pot (when I draw on it), it would be perverse to pay its charges from taxed money (outside the SIPP) when there's the option to pay it from untaxed (inside the SIPP).

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Re: Payment of SIPP fees

#106397

Postby Alaric » December 27th, 2017, 11:10 pm

UncleEbenezer wrote: But not for the SIPP: that being a taxable pot (when I draw on it), it would be perverse to pay its charges from taxed money (outside the SIPP) when there's the option to pay it from untaxed (inside the SIPP).


I was thinking the same. I hadn't caught on that the switch to ii had changed the charging method. They now want £ 100 + VAT so £ 120 which is much the same as TD, but crucially annually in advance in January. For anyone putting in a the maximum allowable in April and used to quarterly charging that's a headache, because the cash flow from dividends isn't quite there and the residual cash balance after reinvestment not enough. Perhaps I should enact a really small sale and recoup the commission against the charge allowance.

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Re: Payment of SIPP fees

#106413

Postby JMN2 » December 28th, 2017, 8:09 am

UncleEbenezer wrote:
JMN2 wrote:I believe Hargreaves Lansdown doesn't allow the SIPP fees from an external bank account.

They do allow taking both SIPP and ISA fees from a Fund&Share account.

I do that for the ISA, to maximise the tax-sheltered pot. But not for the SIPP: that being a taxable pot (when I draw on it), it would be perverse to pay its charges from taxed money (outside the SIPP) when there's the option to pay it from untaxed (inside the SIPP).


Good thinking, UE. My original thought was to earmark one £720 HMRC payment for any future fees but it got muddled

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Re: Payment of SIPP fees

#106415

Postby swill453 » December 28th, 2017, 8:53 am

My provider (Youinvest) appears fairly sanguine about allowing fees to take the cash balance negative, and remaining so until the next dividends restore it to positivity.

Scott.

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Re: Payment of SIPP fees

#125812

Postby Cookie » March 18th, 2018, 5:06 pm

swill453 wrote:My provider (Youinvest) appears fairly sanguine about allowing fees to take the cash balance negative, and remaining so until the next dividends restore it to positivity.

Scott.

That's interesting. No chasing or selling investments?

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Re: Payment of SIPP fees

#125813

Postby swill453 » March 18th, 2018, 5:22 pm

Cookie wrote:
swill453 wrote:My provider (Youinvest) appears fairly sanguine about allowing fees to take the cash balance negative, and remaining so until the next dividends restore it to positivity.

That's interesting. No chasing or selling investments?

Nope, never even contacted me. It was always less than a month before the next dividend rolled in though.

Scott.

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Re: Payment of SIPP fees

#125862

Postby 77ss » March 18th, 2018, 10:49 pm

swill453 wrote:My provider (Youinvest) appears fairly sanguine about allowing fees to take the cash balance negative, and remaining so until the next dividends restore it to positivity.

Scott.


As was my provider (AJ Bell). Somewhat to my gratified surprise!

When I realised that my latest share purchase hadn't left enough cash for the next batch of fees, I 'phoned them up, wondering how I should rectify matters. No problem.


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