Hi there,
I didn’t realise you were only going to roll this out to those who had signed up for email updates. I have now just signed up. When can I expect SIPPs to be rolled out to the rest of us please?
Hi Invest Engine reps,
It was never mentioned you had to already have an account set up, I pre registered a while back and no emails came. I re registered today then found this chat. Please can you ensure you enable my account to open a SIPP. Thanks for your help.
Problem with the pre-crediting suggestion is the calculation would depend on your expected income and must adjust subsequently for your actual income (ideally for last 3 years). Eg. maybe 40% will be/was paid on some of it so the HMRC relief can’t be known by IE.
Tax relief into a SIPP is always 20%, regardless of actual tax rate for the individual, anything higher must be claimed back by the SIPP holder via tax self assessment.
1 Like
@nedjohn
Hi, I’m not sure I follow.
HMRC states that 100% of UK income up to a limit of £60K in the current tax 2023/2024 can be paid into all pensions - that includes SIPP’s and workplace pensions as applicable.
That means to me that:
If a person earns, let’s say £30K for the tax year 2023/24 and takes part in a workplace pension where they pay in 5% (£1.5K) p.a. they could choose to either 1) up their contributions to maximum 100% salary within the workplace pension or 2) they could pay the remaining amount of £28.5K into a SIPP (or a number of SIPP’s) with IE and other providers.
Each provider (IE, other providers/workplace pension) would claim tax relief for the money which has been paid into its SIPP/pension scheme.
As everything is notified to HMRC and registered under the same National Insurance number it is easily traceable for HMRC to make sure that the correct amount of money receives the tax relief due for the current year - i.e. the aforementioned £30K salary in total for this person.
Any overpayments would need to be able to be offset against the remaining allowance from the previous 3 tax years salary max.
At £30K this person is a basic rate tax payer - so only 20% tax relief would be payable - this person doesn’t need to take any further action.
If the scenario is for someone who earns £60K then the tax relief payable would be 20% into the pensions, which comes automatically, and the remaining 20% need to be claimed via self assessment with HMRC.
As Pinch has said - the extra 20% relief you get as a higher rate tax payer comes through a rebate. Eg. If a self employed person earned 120k in a year year, they could make a personal contribution of 48k, which would be topped up to 60k; and they’d then claim a 12k rebate on their tax return.
For what it’s worth, the way I’ve suggested they should reflect the relief instantly is the way that Vanguard displays it in their sipps, and I think it’s the way that minimises chances of accidental overpayment
Hello, I can see that currently the ability to fund another person’s SIPP (such as adult child / spouse etc.) is not available. I know this can be done on other platforms such as Vanguard. Do you plan to make this available in the future? If so, do you have a rough estimate of when? Thanks.
@tom.winterton - you mentioned that Transfers / Investing should all be fully working.
However, support are saying I can’t do any SIPP transfer (from one SIPP to Invest Engine SIPP)…
Please confirm - as I now have two SIPPs so double fees… for the duration that this is an issue.
@tom.winterton and all
we could perhaps used some definition clarification.
Transfer - is for transfers from one provider to IE or IE to another provider
Deposit - (not transfer) is the action of depositing money into an IE produce (ISA, SIPP, General, Business)
This will avoid misunderstandings.
Further to this - support have now said that there will be no SIPP fee charges until 2025.
This would make sense given the lack of Transfer functionality - and avoid any customers incurring double-charging as a result of a lack of ability to transfer an existing SIPP from another provider to IE SIPP at this time.
Hopefully, sometime within 2024 the ability to transfer will be released - that way it will avoid any double-charging taking being potentially imposed on client.
How could you be double charged for an inability to transfer? IE charge based on value in the SIPP, so if you haven’t transferred yet the IE charge would be zero.
To clarify
The frustration is that I’m getting different messages from Invest Engine.
One person in Support has stated that the IE SIPP is free for 1-year from opening.
Another in Support has stated that the IE SIPP is free until 2025 (so practically 1-year at time of writing).
@tom.winterton has said it is 0.15% from Day 1.
They can’t all be True statements.
I have investments in both the IE SIPP and another provider’s SIPP.
Support has said that they can’t currently handle Transfers.
@tom.winterton said that Transfers should all be fully working.
Support clarified that Tom meant to say Deposits - but that’s a big difference.
Again I’m trying to find out which is True?
So what I’m trying to clarify is whether I’m stuck paying for 2 SIPPs (given I’ve got investments in both)?
Whether I’m able to transfer or not?
Whether the IE SIPP is free - if so, until when or how long for?
The ideal outcome.
- IE SIPP is free for 1-year from opening
- IE SIPP can handle transfers
- I can swiftly transfer my SIPP (with another provider) into my IE SIPP.
I also signed up, but didn’t get an email and don’t have the option to create a SIPP. Is there still the chance of joining the trial? @tom.winterton
Hey there, to clarify InvestEngine SIPP fee is 0.15% from Day 1. We offer ‘instant transfers’ as a method to contribute to your portfolio/s. Transfers from other pension providers will be available in the next couple of months, as our team finalise the process. We will let our clients know as soon as it’s released.
3 Likes
Hey Spear, please drop our Client Services team an email at support@investengine.com and they’ll be able to help you further.
Hi Dee,
naturally - due to the error in communications by Invest Engine incorrectly stating to me that it would be free until 2025 - you are going to honour that.
Not biggest it’s a huge fee - but out of good principle.
The amount is going to app £0.50
Kindest Regards,
Hello, please email us at support@investengine.com if you haven’t already to discuss this further.
From the spiel at the sign on process:
- This pension is designed for individuals who are in the accumulation phase of building their retirement fund. If you’re seeking to access or draw income from your pension while it’s held at InvestEngine, please note that our app and interfaces may not be the most suitable for your needs.
I’m not looking to draw my funds immediately but I am 56 so will be looking to within 7-10 years. Will I be able to withdraw my funds within this timeframe?
1 Like
Hi @dc007
Let me provide you with some additional details on this and explain why we’re currently promoting it as an accumulation SIPP.
This is IE’s first pension product, and we think its important we adopt a phased approach to developing the product to ensure we got things write and couple response to feedback. Our plan is to continue enhancing this product over the next approximately two years. The next step will involve supporting Pension Transfers, followed by working on employer contributions later this year. It will likely be next year before we start exploring how we can support drawdown.
Drawdown and the associated process can also be lot more complicated. Our aim here is to ensure the product remains clear and simple to use and we also need to ensure our operational processes are developed at the same time to we can keep costs low.
You’ll obviously apricate there are lots of variable with this and the potential for pension rules changes etc. so we can’t guarantee to any of the timing above. At the moment, if you were to initiate a drawdown, we would rely on our supporting partner, Quai Financial to facilitate this. We would not yet have the user interfaces to display the details of the drawdown and it would be a very cumbersome process.
Hopefully this helps explain some of the spiel in the signup process and why we’ve stated its designed for accumulating SIPP investors. We’ll try to continue to share detail on our development plans as we can going forward.
9 Likes
Thanks for the explanation. I have now opened a SIPP. I guess if you haven’t developed a way to withdraw it when I retire then I’ll transfer it somewhere where I can, but, hopefully you will have this in place when the time comes.
So… I have sold my GIA and was hoping to transfer the resulting cash to my SIPP but that doesn’t appear to be an option. I can transfer it to my ISA cash but not the SIPP cash. I can withdraw it to my bank account and then transfer it back again but that seems to be a bit of a waste of time. Is this a bug?
Hi, transfers from GIA to SIPP accounts is something we are currently working on, the feature is expected to be ready in the coming months. We’ll post updates here and on our socials once it is introduced.
1 Like
I opened one to transfer an old work one.
It says “To transfer a Personal Pension please contact our support”
Then you contact support and they say its not possible and it’ll turn up at some point in the future.
Firstly is that right? - is there no other way to transfer it
Secondly - This frustrates me a little - don’t tell me to contact you if you can’t do it anyway - literally write ‘we cant do it yet’ and dont waste everyones time?
I’m now confused if its possible and i’ve just spoken someone that wasn’t sure, OR they’ve told me correctly and the site is just misleading.
1 Like