Wesleyan Pension Payout Help

Prism

Whisstler wrote: »

Thank you
Dont forget the 25% tax free, anyway, after taking everything into account I should not on the 40% tax

The point is that they don't know that. You could be on a 50k salary which means that all of the taxable part of your lump sum would indeed be at 40%. Don't worry, you will be able to claim this back.

Asghar

Whisstler wrote: »

Cant believe I am having this trouble

The trouble seems to be you.

Whisstler wrote: »

Wesleyan even quoted my Tax Code 1185L (one thing they did get right) and said that was a 40% one lol

What's your tax code got to do with it, it's just the standard tax free allowance for the current year, applicable to everyone. It does not determine if you are a higher rate tax payer or not!

It's your earnings above the personal allowance that determine the amount of tax you have to pay.

How much are you cashing in apart from the 25% tax free amount, as a lump sump payment, anything over £3862 is going to be taxed at 40%.

dunstonh

Apparently, The Financial ombudsman has extremely poor reviews

The FOS is an independent arbiter of complaints. People who succeed in their complaint via them will be happy. People who lose will be unhappy. You can take the reviews with a pinch of salt as that isnt really how the FOS works. They are not there fighting for you. They are taking a balanced view.

Unbelievable for a company like this, they are doing their utmost to hold onto my money and not payout in full

They are small niche provider with largely obsolete plans. So, being slow should not be a surprise.

There is no reason for me to be on the higher tax level

The first withdrawal on a pension would be on month 1 basis and that would almost certainly involve an incorrect amount of tax paid and usually include higher or even highest rate tax. So, there is plenty of reason for you to be charged higher rate.

How much of your problems are you down to not really knowing what you are doing or not knowing how it works and how much is down to Wesleyan?

So far, you haven't actually given any info on what they have done wrong. Your main gripe appears to be that you have taxed on month one basis. However, that is how it should be with the first (or only) payment. So, that isnt an error.

Brynsam

You are in unfamiliar territory, dealing with a company which isn't proceeding at scintillating speed. Unless they have actually breached any statutory deadlines, you might feel miffed, but that's about it. Did you return all the forms, certificates etc in the blink of an eye to speed things along?

As for tax - as others have said, you have taken a chunk of cash (the 75% which isn't tax free) relatively early in the tax year. Wesleyan have taxed you on an emergency basis because that is what HMRC requires them to do. The tax system 'assumes' you will be receiving a similar dollop of cash each month from now on and that's why there has been such a hefty tax take this time.

All you need to do is contact HRMC and apply for a repayment of overpaid tax. See https://www.gov.uk/government/publications/flexibly-accessed-pension-payment-repayment-claim-p55 - you are not alone!

Whisstler

Asghar wrote: »

The trouble seems to be you.



What's your tax code got to do with it, it's just the standard tax free allowance for the current year, applicable to everyone. It does not determine if you are a higher rate tax payer or not!

It's your earnings above the personal allowance that determine the amount of tax you have to pay.

How much are you cashing in apart from the 25% tax free amount, as a lump sump payment, anything over £3862 is going to be taxed at 40%.

Wow, thats so helpful - not

Whisstler

Brynsam wrote: »

You are in unfamiliar territory, dealing with a company which isn't proceeding at scintillating speed. Unless they have actually breached any statutory deadlines, you might feel miffed, but that's about it. Did you return all the forms, certificates etc in the blink of an eye to speed things along?

As for tax - as others have said, you have taken a chunk of cash (the 75% which isn't tax free) relatively early in the tax year. Wesleyan have taxed you on an emergency basis because that is what HMRC requires them to do. The tax system 'assumes' you will be receiving a similar dollop of cash each month from now on and that's why there has been such a hefty tax take this time.

All you need to do is contact HRMC and apply for a repayment of overpaid tax. See linky - you are not alone!

Thanks


Today, I managed to speak to a lovely young lady from HMRC who has confirmed my thinking and told me how to get it sorted



My point to all this is Weselyan did not process my claim swiftly or properly and sorry I am not prepared to air my fugures publically. All figures were checked with the Pensuonwise calculator several times as well as other HMRC info, so I already knew what should have been
I had allsorts of excuses from them, like 1185L is a 40% tax code, your bank is delaying your payment, and many more - checked and proved to be untrue


Thanks to those non judgemental peeps here who did genuinely try to help with useful info


Anyway, all the best, I'm saying no more

Ceme3000

Whisstler, if they have taxed you using 1185L month 1, the first £988 is tax free, then you pay 20% on difference up to approx £3862 then the balance would be taxed at 40% . If you aren't a higher rate tax payer for this tax year, you can just get a rebate from HMRC.

Dazed_and_confused

I think the op may well have used the correct tax calculator but input the wrong information into it.

Any payment (the taxable 75%) in excess of £3,862 will result in some higher rate tax being deducted.

And quite how the op is going to get a refund when Wesleyan haven't supplied HMRC with details of the pension is a mystery!

This transaction does not yet appear on my HMRC account online and no P45

Whisstler

Having browser problems and spell checker missing


So I came here thinking this is where knowledgable experienced heplful non judgemental individuals frequent


There are some and also others who are just the opposite, it seems


So iirc Pensionwise is run by HMRC - the experts


So go there, find the calculator


Enter 0 for all and any income and 50000 in the next box,


Thats for lump sum payout


Come back here and put what it says

Dazed_and_confused

Whisstler wrote: »

Having browser problems and spell checker missing

So I came here thinking this is where knowledgable experienced heplful non judgemental individuals frequent

There are some and also others who are just the opposite, it seems

So iirc Pensionwise is run by HMRC - the experts

So go there, find the calculator

Enter 0 for all and any income and 50000 in the next box,

Thats for lump sum payout

Come back here and put what it says

That calculator is for annual income. You are being paid the pension as a (one off) monthly payment. The calculator has the following statement direct under the result

Paying tax
Your pension provider will take off the tax you owe before they pay you the cash.

The cash you take will be added to any other income you have over the tax year, eg money from work, savings and benefits.

You may pay emergency tax when you take money from your pot which you can claim back.

If your provider doesn!!!8217;t pay your emergency tax back automatically, you can claim it back from HM Revenue and Customs.

The correct tax to be deducted when a £37,500 payment is made using the emergency tax code is £15,229.95.

The HMRC calculator here would have told you that,

http://payecalculator.hmrc.gov.uk/PAYE0.aspx