The Lemon Fool

My accountant has asked me what contributions I made to my SIPP for my tax return. I replied that I didn't make any contributions, just reinvested dividend payments. They are now asking for details of these. Is this correct? I was under the impression that the money was regarded as part of the fund and the reinvested dividends didn't need to be declared, the fund is in drawdown if this makes any difference.

foundone wrote:My accountant has asked me what contributions I made to my SIPP for my tax return. I replied that I didn't make any contributions, just reinvested dividend payments. They are now asking for details of these. Is this correct? I was under the impression that the money was regarded as part of the fund and the reinvested dividends didn't need to be declared, the fund is in drawdown if this makes any difference.

I can't imagine why they need this. Are you sure that they understand that the dividend cash never left the SIPP?

foundone wrote:My accountant has asked me what contributions I made to my SIPP for my tax return. I replied that I didn't make any contributions, just reinvested dividend payments. They are now asking for details of these. Is this correct? I was under the impression that the money was regarded as part of the fund and the reinvested dividends didn't need to be declared, the fund is in drawdown if this makes any difference.

Instead of saying "I didn't make any contributions, just reinvested dividend payments." you should have said "I didn't make any contributions"

Now the accountant thinks that you have taken dividend payments from shares outside the SIPP and invested these monies in the SIPP.
If they had a brain cell they would have realised that this contradicts your statement that "I didn't make any contributions" and should have asked for clarification. I would have expected a more logical way of thinking from an accountant...

PochiSoldi

pochisoldi wrote:

foundone wrote:My accountant has asked me what contributions I made to my SIPP for my tax return. I replied that I didn't make any contributions, just reinvested dividend payments. They are now asking for details of these. Is this correct? I was under the impression that the money was regarded as part of the fund and the reinvested dividends didn't need to be declared, the fund is in drawdown if this makes any difference.

Instead of saying "I didn't make any contributions, just reinvested dividend payments." you should have said "I didn't make any contributions"

Now the accountant thinks that you have taken dividend payments from shares outside the SIPP and invested these monies in the SIPP.
If they had a brain cell they would have realised that this contradicts your statement that "I didn't make any contributions" and should have asked for clarification. I would have expected a more logical way of thinking from an accountant...

In fairness to the accountant, they could well have realised that the second part of "I didn't make any contributions, just reinvested dividend payments." contradicts the first part, but be uncertain how to resolve that contradiction. Having brain cells doesn't make them mind-readers about issues such as whether the dividends concerned come from inside or outside the SIPP and whether foundone understands correctly what a "contribution" is... And asking for details of the dividend payments is a method of asking for clarification on such issues!

Gengulphus

The previous three posters are all correct. It turns out they thought I was using my PSC dividends to top up my SIPP