MPAA triggered - need to tell other pensions ?

talby

I wonder if someone could offer an opinion on a mistake I think I've made and whether I'll get punished by HMRC for it.

On 25/2/19 I flexibly accessed a pension for the first time from one of my pensions (with Standard Life). I also have two other SIPPs, one with AJ Bell and one with Fidelity. However upon re-reading my original SL documentation I now see that I perhaps should have told my two other providers of the fact that I flexibly accessed my SL pension.

The letter from SL says that "Under Government Rules you must tell your other pension providers about this notification or you may be fined. All you need to do is send them a copy of this notification within 91 days of getting it."

The letter also then goes on to say "You only need to contact a pension provider if (i) you're still building up pension rights with them or (ii) they're still receiving pension contributions from you, your employer or a third party on your behalf".

This latter bit led me to believe at the time that I need take no action, as I was not contributing anymore to any pension at the time (although since then on 10/5/19 I made a £3600 gross payment into my Fidelity SIPP). I'm fully aware of the MPAA limit and have no intention of contributing more than £3600 p.a. in the future to any pension, if at all (I no longer work).

I have now also gone into flexi-access drawdown with my AJ Bell SIPP. However what has worried and confused me is a letter from AJ Bell I have just received which says that I need to tell my other pension schemes within 91 days , and it goes on to say "Failure to comply with these rules could result in an HMRC fine of £300, with an additional £60 per day payable for subsequent delays". There is no mention of any conditions to the need for notification of other providers (e.g. continuing to pay in, etc)

Should I come clean and call AJ Bell and Fidelity next week and let them know of the SL drawdown ? Will I be hauled over the coals by HMRC for not telling AJ Bell and Fidelity sooner ?

I plan to call SL and Fidelity and tell them of the AJ Bell drawdown anyway in due course - I've got until mid-December (91 days) to sort that out anyway.

Doing a search finds this is an issue which may have hit others but I'm not clear exactly to what extent. For example https://www.thisismoney.co.uk/money/pensions/article-7261449/Beware-dipping-old-pension-without-telling-current-provider.html

Thanks in advance for any thoughts anyone has.

drumtochty

Not in due course, get your skates on and just do it, rather than messing about!!!!!!!!!!!!!1

Dox

talby wrote: »

Should I come clean and call AJ Bell and Fidelity next week and let them know of the SL drawdown ? Will I be hauled over the coals by HMRC for not telling AJ Bell and Fidelity sooner ?

If you're worried about not telling them sooner, why wait? All you're doing is compounding the problem - and if HMRC really does levy a daily fine you are just building up a bigger bill as each day passes.

But think on for a moment...if fines were being dished out in all directions, don't you think MoneyBox Live, Watchdog or similar would have been doing a feature on it long before now? Just get on and do it; at best nothing happens and at worst you've stopping any fine getting bigger.

SeniorSam

Don't just call, confirm by letter or e-mail and include the fact that you have only just realised the fact that you should give notice. Keep a copy for your records and let HMRC know that you have notified the others.