Tax refund on pension withdrawal

nancybr

My husband took £14k from his pension 4 years ago for urgent repairs to our house. He paid between £8/9k tax on this and was told by our financial advisor that this would be refunded. This hasn’t happened and I was wondering if anyone has any advice about how we can get this money back. 

Silvertabby

How old was he and what rate tax payer was he back then.

Dazed_and_C0nfused

Which tax year was the tax deducted?

Did he file a Self Assessment tax return for that tax year?

£8/9k doesn't sound likely.  On a £14k payment you would expect about more like £5k tax (assuming this was several years ago).

What other taxable income did he have in that tax year?

He paid between £8/9k tax on this and was told by our financial advisor that this would be refunded. 

You must have misunderstood the financial advisor as someone with £14k pension income 4 years ago would still be liable to pay some tax even if that was their only taxable income.

squirrelpie

Was it the first time that he had taken money from that pension provider? If so he would be taxed at an emergency rate that would result in an overpayment and would then expect to receive a refund in the next tax year at the latest. A refund of part of the tax, not all of it. (It would be treated as if he was going to withdraw £168,000 in that tax year I believe).

What other income did your husband have and how did he earn it - in particular how did he pay tax on it? Was it via PAYE (employee?) or self assessment?

Your tax records from that time should show what actually happened. The pension provider will/should have sent you a record, so should any employer, and so should HMRC. You will also have a record of any self assessment that was submitted. If you can't figure it out from those records, it would be useful to post approximate numbers so people can help to interpret them.

Dox

nancybr said:

My husband took £14k from his pension 4 years ago for urgent repairs to our house. He paid between £8/9k tax on this and was told by our financial advisor that this would be refunded. This hasn’t happened and I was wondering if anyone has any advice about how we can get this money back. 

Sounds as if this was a defined contribution pension scheme (i.e. on which has a 'pot' of money available)?

How much cash was in the 'pot' at the time - any idea?

dunstonh

If you are taxed on month one earnings basis and need it to be corrected, you can either fill in a form for HMRC, complete a tax return or wait until HMRC pick it up (which can be several years).  If it has not been picked up by year 4 then you need to tell HMRC.