12 Apr 2019, 10:07
I sent off a AVC lump sum cheque for the 2018/19 tax year that was taken out of my account on April 1st. Sheffield said that did not give them enough time to transfer it to Zurich for the tax year I requested, so lodged in the 2019/20 tax year. They said there was a March 18 cut off point, I am bemused in this digital age why they need nearly 3 weeks to action this. I have never read about this before in the literature they have sent out, and can only guess at the amount of inconvenience this inflexibility must cause. I tried to pursue it, but they kept hiding behind the word 'process' and decided for my own sanity to let it go. They will stop accepting lump sum AVC cheque payments at the end of April, so anyone with plans to do so, should get a move on.
12 Apr 2019, 11:00
It's been a good few years since I last paid in a lump sum – I decided the weekly option was better overall!
At the time you were only allowed to put in lump sums towards the end of the tax year, and I always started the process around January/February by asking for a quote as to how much I could invest. Bearing in mind you could only pay 15% of your earnings into a workplace pension at the time(pre 2006).
But I would agree that in 2019, these things really shouldn't take as long as they do. Especially when other financial transactions can be done electronically in a much shorter time.
Good point about lump sum payments stopping soon – it was mentioned in the AVC booklet that was sent out recently!