small pot lump sum pension isssue

FIREDreamer

susanna1 said:

Re wehre to find all your hmrc information...you just scroll down after youve cliked onto box  to look at previous income years

Thanks. Are you saying you have multiple entries there for this one pension?

susanna1

thankyou for all your comments. I already recieve my NHS pension. The only reason i was worried about the maximum 3 amall pot lump sum rule was because royal london asked me if i had  got/taken 3 already. The  2 small pots were of nominal amounts of about £5,000 max each before the 75% being taxed.  Royal Londons quesionting me as to wheter I had already taken 3 did worry me. I am happy now that I can say no. I can only focus on answering the questions asked to the best of my knowledge and truthfully. Previously some FAs over time and Pensionwise have misunderstood about the subsections of the small pot lump sum I got from Aviva. I had not realised i had not answered your questions about why i was focusing on the 3 pot rule. I just want to check I am not giving misinformation to Royal London as they insinuate that if I have I cannot take thier lump sum in same way. Having all the paperwork from each pot  helps but got confusing becaue some had focused on the subsections of the Aviva one saying that was more than 1 pot in itself. 2IFAs over time both said there was not an issue where as other FAs obviously did not understand what they were looking at from what some of you are saying. Also  RL seem to want to know when I last spoke to Pensionwise. Surely this is not a need if I had clarification from Pensionwise on the last time I did contact them even if it was a year or so ago. Especailly as I have not done anything different since. They see to be implying Im supposed to speak to Pension wise each time I contact them. I wish!  I just want to cash in the 3rd pot so I am not paying more tax than I need to before my income becomes taxable. I have no further money pots to cash in then. I also have no plan to pay into any future pensionable plans. Thankyou for the comments and help in reassuring me.
 

Marcon

susanna1 said:

thankyou for all your comments. I already recieve my NHS pension. The only reason i was worried about the maximum 3 amall pot lump sum rule was because royal london asked me if i had  got/taken 3 already. The  2 small pots were of nominal amounts of about £5,000 max each before the 75% being taxed.  Royal Londons quesionting me as to wheter I had already taken 3 did worry me. I am happy now that I can say no. I can only focus on answering the questions asked to the best of my knowledge and truthfully. Previously some FAs over time and Pensionwise have misunderstood about the subsections of the small pot lump sum I got from Aviva. I had not realised i had not answered your questions about why i was focusing on the 3 pot rule. I just want to check I am not giving misinformation to Royal London as they insinuate that if I have I cannot take thier lump sum in same way. Having all the paperwork from each pot  helps but got confusing becaue some had focused on the subsections of the Aviva one saying that was more than 1 pot in itself. 2IFAs over time both said there was not an issue where as other FAs obviously did not understand what they were looking at from what some of you are saying. Also  RL seem to want to know when I last spoke to Pensionwise. Surely this is not a need if I had clarification from Pensionwise on the last time I did contact them even if it was a year or so ago. Especailly as I have not done anything different since. They see to be implying Im supposed to speak to Pension wise each time I contact them. I wish!  I just want to cash in the 3rd pot so I am not paying more tax than I need to before my income becomes taxable. I have no further money pots to cash in then. I also have no plan to pay into any future pensionable plans. Thankyou for the comments and help in reassuring me.
 

Royal London are, correctly, checking the number of 'small pots' you have already taken, because from what you've said, they are under the belief that you specifically want to use the 'small pots' regime. You don't; it doesn't matter in your case, but equally there's no harm if you do!

Pension providers now have to take steps to encourage customers to get guidance/advice/information before accessing their pension pots, which is why RL are asking about your contact with Pensionwise. You don't have to speak to PW again, but RL need to flag the point.

susanna1

Thankyou. Very reassuring too.

susanna1

FIREDreamer said:

susanna1 said:

Re wehre to find all your hmrc information...you just scroll down after youve cliked onto box  to look at previous income years

Thanks. Are you saying you have multiple entries there for this one pension?

yes. just seen your post.does this matter ?? Got 1 for each part = 4. Each box states "UFPLS and smalll pots"

susanna1

pS te googling ..ive treid it but no actual information i can make headway with other than just stating about 3 pot rule etc which didnt help like these comments have in understanding them

susanna1

Just rechecking all your comments and to summarise my paperwork. Aviva (Friends Provident ) paid me 1 pot lump sum (UFPLS and small pots) in 2019/20 tax year . RNPFN ( formerly labelled Liberty Plan ive now noticed and into which only i paid a single amount) paid me 1 pot lump sum in 2018/19. RL are paying me a 1 pot lump sum in 2024/25 tax year and have sent a disclaimer stating that I will be responsible for paying any fines forthcoming. If i have made an error and the Aviva one has been classed as more than one pot for 2012/20 tax year there should be nothing to be concerned about due to the small amounts involved ? On contacting Aviva all they would say is that it was paid as one lump sum when I asked was it definitely classed as 1 pot.  Its the thought of a fine that is concerning me if Ive made a mistake. If its 1 pot then why would HMRC record each amount paid and taxed seperately from AVIVA and why when I rang AVIVA will they just say they "paid it as one lump sum" and "classed as one policy".Will this mean it may not be classed as 1 pot?

Sorry,yes i may be fixated on 3 pot rule but only because its what i keep being asked ..have you got or taken 3 pots or more or less already. My answer to best of my knowledge was I only have 3 pots in total of which 2 were already taken out. When RL asked if ive been in contact with Penisonwise again Ive said yes but have said this out of frustration as have not been able to get an appt the last twice Ive tried to this last year. However when I did speak to Pensionwise i had not known about how the  Aviva  payments appeared on my HMRC site.

molerat

When RL asked if ive been in contact with Penisonwise again Ive said yes but have said this out of frustration as have not been able to get an appt the last twice Ive tried to this last year.

You are concentrating too much on the answer to the questions.  The regulations state that the provider must ask the question, the answer doesn't really matter.  I go through this every year when I take my pension withdrawal.

Marcon

susanna1 said:

Just rechecking all your comments and to summarise my paperwork. Aviva (Friends Provident ) paid me 1 pot lump sum (UFPLS and small pots) in 2019/20 tax year . RNPFN ( formerly labelled Liberty Plan ive now noticed and into which only i paid a single amount) paid me 1 pot lump sum in 2018/19. RL are paying me a 1 pot lump sum in 2024/25 tax year and have sent a disclaimer stating that I will be responsible for paying any fines forthcoming. If i have made an error and the Aviva one has been classed as more than one pot for 2012/20 tax year there should be nothing to be concerned about due to the small amounts involved ? On contacting Aviva all they would say is that it was paid as one lump sum when I asked was it definitely classed as 1 pot.  Its the thought of a fine that is concerning me if Ive made a mistake. If its 1 pot then why would HMRC record each amount paid and taxed seperately from AVIVA and why when I rang AVIVA will they just say they "paid it as one lump sum" and "classed as one policy".Will this mean it may not be classed as 1 pot?

Sorry,yes i may be fixated on 3 pot rule but only because its what i keep being asked ..have you got or taken 3 pots or more or less already. My answer to best of my knowledge was I only have 3 pots in total of which 2 were already taken out. When RL asked if ive been in contact with Penisonwise again Ive said yes but have said this out of frustration as have not been able to get an appt the last twice Ive tried to this last year. However when I did speak to Pensionwise i had not known about how the  Aviva  payments appeared on my HMRC site.

Say that you are simply withdrawing the pot, and aren't now relying on the 'small pots' rule. That should solve the issue once and for all.

susanna1

Thankyou all. Thankyou Marcon too. Sorted.