I have a few SIPP questions for the forum please.
When you open a FreeTrade SIPP how long does the first HMRC contribution take and is the payment date the same each month?
Is the payment made direct from HMRC or is it paid then distributed by FT as per dividends?
I understand that the payment can take between 6 and 11 weeks and I am the beginning of week 9 since my initial contribution. Today feels like a good day for me to get the HMRC contributions and invest in some discounted stocks.
HMRC pass the rebate to FT, which then appears in your SIPP activity as ‘Tax Relief’
Not sure if mine is a typical example but:
1/2/21 - made first SIPP top up
23/3/21 - first HMRC rebate received
So about 8 weeks for the first one.
It usually gets paid on 21st of the month and I make my monthly top ups on the 1st of the month.
Yeah theirs no set timeframe but normally no longer than 10 weeks
Thank you @weenie, that’s useful. I tend to spread my contributions out, so this may make a difference.
So if there are delays 8 weeks or so, how it impacts the annual allowance for the year ?
For example:
If contribution is done in March 2023 and HMRC tax rebate is received after 6th Apr 2023. Will rebate gets counted towards 2023-24 tax year’s allowance ?
In this case it should be counted against your 2022-23 allowance because you made a contribution in that tax year. The HMRC rebates are tied to contributions and when they are made.
But if any doubt, please do consult a tax adviser.
This is the timetable for when you get your tax relief. Supplied as some people thinks its a bit random.
Useful if you want to keep money in savings account. Or not sell shares earlier than necessary. I am timing my next payment into my sipp based on this.
Tax Relief Calendar 2023 SIPP
Contribution made between Tax relief received on
6 November – 5 December 2022 23 January 2023
6 December 2022 – 5 January 2023 21 February 2023
6 January – 5 February 2023 21 March 2023
6 February – 5 March 2023 21 April 2023
6 March – 5 April 2023 22 May 2023
6 April – 5 May 2023 21 June 2023
6 May – 5 June 2023 21 July 2023
6 June – 5 July 2023 21 August 2023
6 July – 5 August 2023 21 September 2023
6 August – 5 September 2023 23 October 2023
6 September – 5 October 2023 21 November 2023
6 October – 5 November 2023 21 December 2023
6 November – 5 December 2023 22 January 2024
See above for timing of payments of HMRC contributions.
Anyone still waiting on their HMRC payment today? Mine still isn’t in yet.
Not had mine yet. So far I have only had 3 months worth of HMRC contributions and they been on either the 21st or 22nd of the month. So maybe tomorrow then!
Nothing for me either. Up to now it always appeared on the day. Hoping this isn’t another thing thats gets added to the delays freetrade seem to be suffering with since they laid off people a while back (transfers/ tax rebates in isa on reits, dividends etc).
Hi all,
We’ve just had an update from Platform One who is investigating this matter and has raised it with HMRC. We are still awaiting these contributions and expect an update shortly.
Best,
Alex
Do we have any update on what’s happening with this yet? Thanks
Hi @Emmie
We’ve just chased and are expecting to hear back from Platform One shortly with more detail. They are responsible for getting these payments from HMRC and issuing them to your accounts. We’re keeping on top of them to get this sorted as quickly as possible.
Best,
Alex
You can ignore my last. We’ve just had word back from Platform One that HMRC is actioning the payment. We’re awaiting an ETA for these payments to be credited to your accounts but it should be in the coming days.
Apologies for the delay.
Best,
Alex
I’m not too sure in this case. It seems to have been caused by the transition from Gaudi to Platform One.
All is sorted now. Hopefully payments will be with you shortly after the weekend.
Best,
Alex
Why was this left for so long?
Hi both,
In terms of the delay, I understand this had to do with the move from Gaudi to Platform One. I’m not too clear on anything further, but when these types of payments get dropped it can be challenging to get things resolved swiftly.
We were told that payment was going to be made by HMRC to Platform One on Friday and that it should be received within a couple of business days.
Hopefully that means this will be resolved early this week as I said above.
Apologies for this delay.
Best,
Alex