Tax, What a Palaver!

xylophone

It's a deferred pension with a DB and DC component.

Can you expand on this?

[Deleted User]

xylophone wrote: »

Can you expand on this?

Yes, I suppose it was really two different pensions, a deferred DB pension which I'll take when I'm 65, and a small DC pot which I've now taken in full as a lump sum. They were, of course, completely separate entities.


However - maybe someone can explain this - there was a small discrepancy between the quotation Willis Towers Watson gave me for the DC lump sum and its value as shown on the WTW pension portal. I got precisely £1707 less than the figure shown on the portal. This discrepancy is now shown as a DC component of the DB pension. It's listed as 'Equitable Life Fund'. It appears to be related to the Equitable Life fiasco from a few years ago. The WTW help desk have singularly failed to provide an understandable explanation !

xylophone

I got precisely £1707 less than the figure shown on the portal. This discrepancy is now shown as a DC component of the DB pension.

Is it possible that this was an AVC to the DB Scheme which can only be taken at the same time as the main scheme?

If the DC Scheme was entirely separate, you should surely have been able to access a 25% PCLS?

Reluctantpensioner

BoGoF wrote: »

A cumulative tax code in month 1 of the tax year will only give you 1/12th of your tax free allowance. Month 2 will give you 2/12ths....and so on. Basically you either drawdown what is covered by the tax free allowance when you draw it......or wait till end of tax year.

This is not my experience. If you make a withdrawal at the end of the tax year, they will still multiply it by 12 and tax you at 45% with no Personal Allowance. (Two different Pension Providers/ Tax Years)

The good news: use the online P55 form: you can get it back in days.

[Deleted User]

Hello, UFPLS: The P55 form can be done online and the whole action is painless. EMAIL reply from HMRC , followed by postal reply and finally
a cheque payment refund , if appropriate.
Regards

clivep

My wife & I take an UFPLS each year and complete the P55s online.


My wife no longer has to submit tax returns and gets a cheque for the refund.


I still have to complete a tax return (for some unknown reason as I meet all the criteria for not having to) and my refund gets credited straight to my bank a/c by HMRC.

GSP

Thanks for the useful experiences on this and what to expect.
Just completed the form P55 online which was good not having to print off pages and send by post. Was fairly easy to do once you had got all your information to hand like logging on to the system in the first place if you haven't used it for a while.
On completion it said to expect to hear by 15 working days, so see how it goes.

archie17

Just for information we filled in form 55 and got our cheque well within the 15 days.

I think we could have avoided this by drawing down £100 getting a tax code, then drawing down the lump sum.

JoeCrystal

archie17 wrote: »

Just for information we filled in form 55 and got our cheque well within the 15 days.

I think we could have avoided this by drawing down £100b getting a tax code, then drawing down the lump sum.

£100 billion is quite a sum to draw down! :rotfl:

mark1959

GSP wrote: »

Thanks for the useful experiences on this and what to expect.
Just completed the form P55 online which was good not having to print off pages and send by post. Was fairly easy to do once you had got all your information to hand like logging on to the system in the first place if you haven't used it for a while.
On completion it said to expect to hear by 15 working days, so see how it goes.

This is what I've done for the last 3 years, paid a load of tax and got it back within 2 weeks. Quite a rigmarole.