Form P55 - Pension Tax Refund

sj15

Annemos said:

I am going to write that again.... the instruction does say....do not enter any non-taxable income in these amounts, 

So I agree you have the 10,000 in both places. And then also the tax taken off. 

This is what it says on her pay slip:

Gross To Date	£10,000
Taxable Pay To Date	£10,000
Tax to Date	£2,958

sj15

Annemos said:

Can you perhaps send the form in by post, with a note that they might read. So you can tell them that is how you interpreted it. 

,

This is a great idea. 
I'm gonna try and call them again tomorrow and see if I get through. Otherwise I'll fill it in and send it with a letter. 
Thanks for helping!

Thrugelmir

sj15 said:

1. UK pension 1 (asks for pension provider full details and taxable amount)

Asks for full amount of the payment before tax is deducted.  This is to enable the HMRC to track the amount of tax free cash drawn as well. 

What was the gross amount drawn down from the pension fund?  Assume that was 25% tax free element as well. 

Annemos

But form says this too.....

UK pension income.  (We’ll ask about State Pension details at question 14.)  This includes income from: • pension annuities • workplace • occupational and personal pensions • small pension (trivial commutation) • flexible pension payments paid as lump sums • pension death benefit lump sum payments.    Customers filling in this form should not include non-taxable income in this section so any lump sum death benefit payment that is tax free, should not be declared.

sj15

Thrugelmir said:

sj15 said:

1. UK pension 1 (asks for pension provider full details and taxable amount)

Asks for full amount of the payment before tax is deducted.  This is to enable the HMRC to track the amount of tax free cash drawn as well. 

What was the gross amount drawn down from the pension fund?  Assume that was 25% tax free element as well. 

Yeh she took her tax free lump sum but the form says not to declare it if it is tax free lump sum. 
#confused

sj15

For future reference for anyone in this situation in the future. I got through to HMRC this morning (8am).
The lovely lady on the phone mentioned the best thing to do is print the form p55, and write in the details.
But only fill out the second table (Pension flexibility payments paid as lump sum 1). The first table refers to monthly amounts you may be getting from a pension.
Going to do that today so fingers crossed that they accept it. 

MK62

sj15 said:

For future reference for anyone in this situation in the future. I got through to HMRC this morning (8am).
The lovely lady on the phone mentioned the best thing to do is print the form p55, and write in the details.
But only fill out the second table (Pension flexibility payments paid as lump sum 1). The first table refers to monthly amounts you may be getting from a pension.
Going to do that today so fingers crossed that they accept it. 

This is correct - it's what I've done for 3 years with no problems - tax refunded to my bank account in c4-6 weeks.

I agree though, the form's wording could be better.......

TBH, the PAYE system could do with a bit of a functionality upgrade to deal with lump sum payments - it's always dealt with them in a frustrating way......"tax first, sort later", seems to be MO.

molerat

It seems the 3 methods of completing the form are different in the way they approach the question.  MrsM did it through GG and you can answer no to the first part - you are not going to access more pensions - and put the details of the lump sums in the second part which I believe is what they really want to know. Amazing how HMRC can make something so simple really complicated. Glad we have now got tax codes for future access.

Thrugelmir

molerat said:

Amazing how HMRC can make something so simple really complicated. 

That's why there's a help line. You only need ask once.