Poor Service from MyCSP

xylophone

Apparently this refund should be paid as part of the PCLS but is it possible that this repayment brings the lump sum to an amount over the maximum allowable lump sum so that you should have opted for higher pension instead?

Or does the fact that you received the refund before scheme pension age make any difference?

Have you put your query to HMRC or MyCSP?

https://forums.moneysavingexpert.com/discussion/5112135

juliepp

Thanks for responding xylophone. Feeling very alone at the moment

I was over the normal minimum pension age of 55, so I don't think that is an issue.

The WPS refund WAS paid as part of my PCLS.

(I had foolishly regIstered for self-assessment from 6/4/14 as I make jewellery as a hobby and thought I might be able to sell some of it. I wish I had tried to sort all this out closer to 5 April 2015 instead of procrastinating over my self assessment.)

It was the HMRC help line who said today that I would have to pay 40% tax and that has thrown me into a panic.

Having seen various threads about poor service at My CSP, I am nervous of contacting them now.

HMRC have said that they will arrange a home visit to look at my pensions paperwork as I suffer from and anxiety disorder. Is this them just being helpful, or something more sinsister? (As you ca probably tell, I am very anxious now.)

juliepp

Addendum. I found the 'Statement of Lifetime Allowance Used' document that I received when my lump sum was paid. Civil Service Pensions have included the amount of WPS refund in the total for 'Lump sum brought into payment'. I have still only used 22.46% of the lifetime allowance, so surely I should not have to pay tax on the WPS refund???

juliepp

Dear xylophone,

I would be interested to see the information you had found, but your link no longer works. Any idea where I should look?

Thanks

greenglide

If the WPS refund was paid as part of the PCLS when what makes you think it's being taxed! How is it being taxed?

Are you certain it is being taxed or have you misinterpreted something which HMRC have said?

juliepp

Hi greenglide

Thanks for responding.

The WPS was not taxed when it was paid. The problem has only arisen because I had to complete a self assessment and made the mistake of asking HMRC for advice about whether I should declare it on my return.

The HMRC telephone guy didn't inspire confidence as he had to keep asking someone else and he generally sounded dopey. He said that the refund would be treated as an unauthorised payment and subject to 40% tax.

I have been i a state of panic ever since. My sister and I have done various on-line searches and now I believe that it was part of my PCLS and that I didn't need to declare it as taxable income as I am within my Lifetime Allowance limit.

But, because I raised it with HMRC, the monster is rolling now and I am waiting for HMRC to contact me about a home visit.

I have nothing to hide (apart from untidiness), but it is still sary for someone with my anxiety issues.

I did wonder if I could scan my pension award docs and email them to HMRC, but they on't seem to have an email contact service, apart from technical on line problems.

juliepp

apologies for typos, hope you understand what I put.

xylophone

I would be interested to see the information you had found, but your link no longer works. Any idea where I should look?

http://webarchive.nationalarchives.gov.uk/20140305122816/http://www.civilservice.gov.uk/wp-content/uploads/2011/09/3_5_tcm6-1528.pdf

See also http://www.civilservicepensionscheme.org.uk/media/30000/crb-1.pdf

juliepp

Much appreciated.x

greenglide

The WPS was not taxed when it was paid. The problem has only arisen because I had to complete a self assessment and made the mistake of asking HMRC for advice about whether I should declare it on my return.

The PCLS, because it is not subject to tax, surely doesnt go in the Self Assessment? This is you problem.

You are using the online self assessment, arent you? It is much easier than the paper version.