Tax treatment of Teacher's Pension Refund due to Goodwin Ruling

mybestattempt

Leslob said:

But this was my appeal, against the decision they made last year.
I'll give the pension company another ring next week and see if they have any more ideas, and probably ring HMRC as well - but am not  expecting anything usefull.

The pension company can't help with an appeal against a HMRC decision other than to provide what they have already done, by providing a breakdown of the pension arrears.

You really need to pursue this with HMRC. 

If you disagree with the decision they have made you have a right to continue with an appeal:
 
https://www.gov.uk/tax-appeals

Leslob

I have now received a letter saying that they were unable to recalculate the tax due "as the information only gives us a breakdown of the gross amount of pension due. This will include the payment you received in the relevant tax year. I require a breakdown on the arrears payment only showing the amount attributable to each year as some of the pension for will have already been tax."
Note "will have already been tax." is exactly as it appears.
I'm not convinced that I understand this!
But I have relayed the information to the pension company and am awaiting their response.

mybestattempt

The arrears were all taxed in the year they were paid.

You need to send HMRC with details of the pension arrears for each of the earlier tax years; the pension company will be able to give you them if they haven't already done so.

Leslob

Just received a message from HMRC saying that I don't owe anything for that year!

lib21by

I was faced with the same, and was able to send HMRC a copy of the year-by-year breakdown which TP had already sent to me, HMRC never admitted that they were wrong, but the matter was satisfactorily been resolved when a revised tax code was issued.

execdaughter

Wondering if anyone is still having these problems. Ours only started in April, the short tax calculation arrived on the day my father died suddenly and I'm glad he didn't see it. Fortunately his mail didn't drop until the afternoon. It would have really worried him. His pension was NHS and he received the back payments in 2023. Now HMRC are applying the full amount to that year and 40% tax has been triggered. HMRC were informative and told me to get the annual apportionment but NHS pensions have been playing dumb for six months now and just keep re-sending the original letter with the total amount on it. Just wondering if it's because the bereavement team are dealing with it and whether there's another department that are helping people get these statements.