arub321

Yes, I know that by paying into the SIPP I won't be saving the 2% NI. However, my current workplace pension charges 0.43% yearly of the value of the fund, which is far more then interactive investor for example, which charges a flat fee regardless of the value of the pot. Saving 2% NI on the pension contribution is nothing compared to the 0.43% *yearly* I have to pay on the workplace pension plan. With ii charging a flat fee, the math seems pretty clear to me.

By paying the tax refund into the fund, you'd get an additional automatic 20% refund. And the next year you'd be able to get the additional 20% back. This could lead to a loop where you keep getting tax back -- is this correct? This can't be right, for sure?

Hello I currently make above £125k a year, and my employer and I contribute about £22k of my salary into a workplace pension. Due to the costs associated with the workplace pension I would like to move part of my pension to a SIPP, and contribute the minimum amount to the workplace pension (to keep my employer paying into it) while paying most of the money into the SIPP every month. Being a higher taxpayer I know that when I pay into a SIPP I only get 20% tax relief automatically -- in order to get the additional 20% I have to submit a SA at the end of the year. This, however, seems like a poor option, mostly because I don't get to invest the extra 20% for up to a year, and therefore lose the interests I would have otherwise earnt on it. Is there a way to get this extra 20% earlier? If I let HMRC know how much I'm planinng on contributing into my SIPP for the year, will they adjust my tax code accordingly? How are other people paying into their SIPP, is everyone waiting until the end of the year to claim tax back? That seems like a very inefficient way of investing. Thank you in advance