Share this page:
Stay connected:
Welcome to the Citywire Money Forums, where members share investment ideas and discuss everything to do with their money.

You'll need to log in or set up an account to start new discussions or reply to existing ones. See you inside!

Notification

Icon
Error

Time for HMRC contribution to reach SIPP
AnthonyL
Posted: 25 May 2018 09:50:53(UTC)
#1

Joined: 27/07/2010(UTC)
Posts: 35

Thanks: 3 times
Was thanked: 17 time(s) in 8 post(s)
Opened a SIPP at the beginning of the tax year and the HMRC contribution has still not reached it. Given that the selected fund as gained about 6% in that time it is a bit galling to be missing out.

So where is the delay - is HMRC slow? Or is the provider hanging on to cash for longer than they ought? What are you experiences of the time taken?

The HMRC contribution is sitting there as a notional figure but transactions do not show it coming in and it hasn't been allocated to the primary fund.
Catch The Pigeon
Posted: 25 May 2018 10:04:13(UTC)
#2

Joined: 09/12/2015(UTC)
Posts: 78

Thanks: 35 times
Was thanked: 116 time(s) in 36 post(s)
AnthonyL;62902 wrote:
Opened a SIPP at the beginning of the tax year and the HMRC contribution has still not reached it. Given that the selected fund as gained about 6% in that time it is a bit galling to be missing out.

So where is the delay - is HMRC slow? Or is the provider hanging on to cash for longer than they ought? What are you experiences of the time taken?

The HMRC contribution is sitting there as a notional figure but transactions do not show it coming in and it hasn't been allocated to the primary fund.


It should take no longer than 11 weeks for the provider to receive tax relief.

Sounds like an issue with your provider. Who are they?
Nigel G
Posted: 25 May 2018 10:31:00(UTC)
#3

Joined: 03/07/2014(UTC)
Posts: 46

Thanks: 18 times
Was thanked: 61 time(s) in 30 post(s)
Looking at HL's tax relief calendar, for contributions made between 6 April - 5 May the tax relief should be received on 21 June (or the next available working day).

http://www.hl.co.uk/__da...4021/sipp_tax_relief.pdf
3 users thanked Nigel G for this post.
David 111 on 25/05/2018(UTC), AimingforFIRE on 25/05/2018(UTC), Will Morris on 26/05/2018(UTC)
Tim D
Posted: 25 May 2018 10:41:54(UTC)
#4

Joined: 07/06/2017(UTC)
Posts: 485

Thanks: 1764 times
Was thanked: 715 time(s) in 320 post(s)
Just checked ATS's record for the last few years and the "Subscription tax reclaim"s generally turn up around a couple of months after adding money to the SIPP (e.g 4/10/2017 -> 21/11/2017, 23/9/2016 -> 21/11/2016, 25/1/2016 -> 21/3/2016) although occasionally they've taken a little longer e.g 9/2/2016 -> 21/4/2016 (wonder if that one was maybe something to do with other end-of-tax-year distractions).

J Thomas
Posted: 25 May 2018 11:44:11(UTC)
#5

Joined: 22/02/2012(UTC)
Posts: 309

Thanks: 375 times
Was thanked: 421 time(s) in 174 post(s)
I am very surprised some pension providers wait for HMRC to issue the money. My SIPP is with Standard Life and any contributions are automatically credited with the tax relief and grossed up instantly. Standard Life are then reimbursed by HMRC.
Obviously if you are a higher rate taxpayer the difference in higher rate is calculated through your tax return; but basic rate taxpayers should always receive the tax relief instantly at source.
PaulSh
Posted: 25 May 2018 14:31:24(UTC)
#6

Joined: 02/12/2014(UTC)
Posts: 106

Thanks: 23 times
Was thanked: 147 time(s) in 81 post(s)
AnthonyL;62902 wrote:
Given that the selected fund as gained about 6% in that time it is a bit galling to be missing out.

If you'd had your tax relief earlier and the fund had then dropped by 6% you'd be wishing the relief had been delayed. Some you win, some you lose.

J Thomas;62906 wrote:
My SIPP is with Standard Life and any contributions are automatically credited with the tax relief and grossed up instantly.

So effectively you have a rolling credit facility with Standard Life, which given the size of their charges I'm sure they can easily afford.
2 users thanked PaulSh for this post.
J Thomas on 25/05/2018(UTC), Tim D on 31/05/2018(UTC)
J Thomas
Posted: 25 May 2018 16:30:24(UTC)
#7

Joined: 22/02/2012(UTC)
Posts: 309

Thanks: 375 times
Was thanked: 421 time(s) in 174 post(s)
Paul,
The charges levied by Standard Life appear to be very similar to other pension providers; yet the fact SL credit SIPP individuals with the basic tax relief instantly seems to me to give this company a huge commercial advantage in terms of goodwill, and new and repeat business.
If there were any problem with an individuals tax position with HMRC then SL would just deduct the monies already credited, so there is little or no risk as far as SL are concerned.
I also hold Standard Life as an individual shareholding for the 6% dividend, which covers the SIPP charges.
My only concern was the merger with Aberdeen Asset Management. However it is becoming apparent SL simply bought AAM's clients and assets at what is now looking a bargain price.

AnthonyL
Posted: 25 May 2018 20:18:41(UTC)
#8

Joined: 27/07/2010(UTC)
Posts: 35

Thanks: 3 times
Was thanked: 17 time(s) in 8 post(s)
Well it seems I'm perhaps being impatient, though it still would be interesting to know when HMRC actually release the money.

@PaulSh - on average I hope for my investments to go up.
Redundant (Old Timer?)
Posted: 25 May 2018 22:07:03(UTC)
#9

Joined: 07/01/2010(UTC)
Posts: 151

Thanks: 95 times
Was thanked: 129 time(s) in 83 post(s)
If I remember correctly, SIPP providers make quarterly returns to HMRC on monies received and from whom. HMRC then pay the basic rate tax relief due on the SIPP payment to the provider within 15 working days (effectively 3 weeks) of receipt of the return.

One point to note is that the quarterly HMRC return dates maybe different between SIPP providers. Thus one may be end of March, June, September, December whilst another maybe February, May, August and November. So if you want to get the tax relief money earlier, and do not want to move to SL, you need to find out your provider's quarterly return dates and make your SIPP payments a few days before these.
2 users thanked Redundant (Old Timer?) for this post.
AnthonyL on 26/05/2018(UTC), Tim D on 31/05/2018(UTC)
+ Reply to discussion

Markets

Other markets