Withdraw lump sum from Pension BR tax code.

Hendog

TheSpectator said:

Hendog said:

DRS1 said:

Hendog said:

dunstonh said:

I guess that is why HMRC have told me to speak to them about it and ask them to investigate it. 

But what do you hope to get from it?

They may well say they could have done it that way but employed the other way, but under the rules of self-assessment, you are responsible for your own tax declarations to HMRC and there is no way for them to know what tax you owe.  They are not advisers. It isn't their role to advise you.  Just the usual generic risk warnings for you to read at your convenience.   

Did you read those risk warnings and what do they say about tax?
Maybe you can name the pension provider as there is a good probability that someone here has access to their risk warnings.

No I’ve not read any risk warnings and don’t really know what you mean by risk warnings.  Would be helpful if you could tell me what it means so I can look into it.

yes I agree it’s my responsibility to pay any tax owed under self assessment but if someone or the pension company have made a mistake and  that is going to cost me extra money say any interest surely I would have a case to claim that off them. 

I have copied what it has said on the letter to me below this message what I have found since looking in to it. So surly they are at fault for not following this process unless they have a valid reason not to. I don’t want to name the company as it not fair on them and could comeback on me. To me it says they should have paid the tax and clearly have not and have broken the rules. 

You have also requested an income payment of £278,000.00 before tax. We will tax this as earned income, and pay you the amount after tax has been deducted.

If this is your first income payment since opening your Account, HMRC rules mean that we have to tax it on a Month 1 basis. This may mean you pay more tax on your first payment than you will on later payments. We will send details of your income payments to our tax office, 

The bit I have put in italics and bold is the sort of warning @dunstonh is talking about.  What they are doing is warning about the usual situation where more tax is deducted than should be deducted.  It is the usual issue on these boards and gives rise to guidance on how to claim back the extra tax.  If you ask them what happened I think you should quote this warning back at them because it would make you think they might deduct too much tax not too little.

The mention of a Month 1 basis doesn't really help with the tax code they are going to use - I don't think it excludes using a BR code but perhaps one of the tax experts on here can comment on that.

I doubt very much whether they will take responsibility for any of the tax due - what they did makes no difference to how much tax you have to pay - it only affects how it is collected.  As to interest well maybe they will accept that if they had not given you the possible overpayment of tax warning and the we have deducted the right amount of tax assurance then you would not have spent the money you should have held back for the ultimate tax bill.  In that case the fact that you will have to pay interest on that tax bill could be laid at their door.  It is arguable.  The result I would expect from any complaint you may make would be a payment for distress and inconvenience which may be £50 or £100 or so.

luckily at the moment HMRC have said I will not get any Penalties or interest, put on it as long as I pay £100 a month until a outcome is made.
I have to wait now until the pension company get back to me as I have sent a letter asking them to investigate it as to way all the tax was not payed when it’s their responsibility to ensure that all the tax was paid before I received any money. 

I did a payment plan with HMRC what would mean that the payments I can afford would cause the interest to be over £100000. So if they have made a mistake it could be in their interest to help me to clear the tax payment. 

At the end of the day I can Challenge them and if it’s not resolved take it to the ombudsman if there is a case. 

Have you it in writing that no interest will be charged?. There are some unique circumstances where HMRC will give up interest that is legally due and this scenario is not one of them.

The advice HMRC gave for you to contact the pension company is also incorrect. The only people who can hold the pension company to account is HMRC and as I said earlier they won't in your situation.

HMRC said the call is recorded and I would receive a letter saying every-think. 

Interest would not kick in till the February anyway so hopefully things get sorted by then if not I will go back to them to double check. 

I totally agree that it should be HMRC contacting the pension company and I did Challenge them on it.
They did say that once I have information for the pension company to raise a complaint with them.
I have also sent a letter to HMRC asking for all correspondence between them and my pension company. 

This is the letter to HMCR

 Hi

I am in receipt of a tax demand for £X.  This is due to my opting to withdraw my pension as a lump sum, not my employment.

 Please provide details including copies of the correspondence between HRMC and my pension provider (add name) relating to the level of tax that should have been deducted at source from the funds. 

 I would also appreciate a copy of your complaints policy so that I can follow the correct process if I need to progress the issue.

 I would appreciate a quick response as the amount of money stated as due, is causing me considerable anxiety.

So waiting to hear back. 

Both the pension company and HMCR have a duty off care to follow 

I just found it weird that HMRC said it was a technical issue yet contact your pension company about it. Surly if they know what it is they should have acted on it.

Hendog

Dazed_and_C0nfused said:

TheSpectator said:

Hendog said:

DRS1 said:

Hendog said:

dunstonh said:

I guess that is why HMRC have told me to speak to them about it and ask them to investigate it. 

But what do you hope to get from it?

They may well say they could have done it that way but employed the other way, but under the rules of self-assessment, you are responsible for your own tax declarations to HMRC and there is no way for them to know what tax you owe.  They are not advisers. It isn't their role to advise you.  Just the usual generic risk warnings for you to read at your convenience.   

Did you read those risk warnings and what do they say about tax?
Maybe you can name the pension provider as there is a good probability that someone here has access to their risk warnings.

No I’ve not read any risk warnings and don’t really know what you mean by risk warnings.  Would be helpful if you could tell me what it means so I can look into it.

yes I agree it’s my responsibility to pay any tax owed under self assessment but if someone or the pension company have made a mistake and  that is going to cost me extra money say any interest surely I would have a case to claim that off them. 

I have copied what it has said on the letter to me below this message what I have found since looking in to it. So surly they are at fault for not following this process unless they have a valid reason not to. I don’t want to name the company as it not fair on them and could comeback on me. To me it says they should have paid the tax and clearly have not and have broken the rules. 

You have also requested an income payment of £278,000.00 before tax. We will tax this as earned income, and pay you the amount after tax has been deducted.

If this is your first income payment since opening your Account, HMRC rules mean that we have to tax it on a Month 1 basis. This may mean you pay more tax on your first payment than you will on later payments. We will send details of your income payments to our tax office, 

The bit I have put in italics and bold is the sort of warning @dunstonh is talking about.  What they are doing is warning about the usual situation where more tax is deducted than should be deducted.  It is the usual issue on these boards and gives rise to guidance on how to claim back the extra tax.  If you ask them what happened I think you should quote this warning back at them because it would make you think they might deduct too much tax not too little.

The mention of a Month 1 basis doesn't really help with the tax code they are going to use - I don't think it excludes using a BR code but perhaps one of the tax experts on here can comment on that.

I doubt very much whether they will take responsibility for any of the tax due - what they did makes no difference to how much tax you have to pay - it only affects how it is collected.  As to interest well maybe they will accept that if they had not given you the possible overpayment of tax warning and the we have deducted the right amount of tax assurance then you would not have spent the money you should have held back for the ultimate tax bill.  In that case the fact that you will have to pay interest on that tax bill could be laid at their door.  It is arguable.  The result I would expect from any complaint you may make would be a payment for distress and inconvenience which may be £50 or £100 or so.

luckily at the moment HMRC have said I will not get any Penalties or interest, put on it as long as I pay £100 a month until a outcome is made.
I have to wait now until the pension company get back to me as I have sent a letter asking them to investigate it as to way all the tax was not payed when it’s their responsibility to ensure that all the tax was paid before I received any money. 

I did a payment plan with HMRC what would mean that the payments I can afford would cause the interest to be over £100000. So if they have made a mistake it could be in their interest to help me to clear the tax payment. 

At the end of the day I can Challenge them and if it’s not resolved take it to the ombudsman if there is a case. 

Have you it in writing that no interest will be charged?. There are some unique circumstances where HMRC will give up interest that is legally due and this scenario is not one of them.

The advice HMRC gave for you to contact the pension company is also incorrect. The only people who can hold the pension company to account is HMRC and as I said earlier they won't in your situation.

Agree with this.  Highly unlikely there will be no interest charged.

And I really don't understand what you are ultimately hoping to achieve from the pension company.

Dazed_and_C0nfused said:

TheSpectator said:

Hendog said:

DRS1 said:

Hendog said:

dunstonh said:

I guess that is why HMRC have told me to speak to them about it and ask them to investigate it. 

But what do you hope to get from it?

They may well say they could have done it that way but employed the other way, but under the rules of self-assessment, you are responsible for your own tax declarations to HMRC and there is no way for them to know what tax you owe.  They are not advisers. It isn't their role to advise you.  Just the usual generic risk warnings for you to read at your convenience.   

Did you read those risk warnings and what do they say about tax?
Maybe you can name the pension provider as there is a good probability that someone here has access to their risk warnings.

No I’ve not read any risk warnings and don’t really know what you mean by risk warnings.  Would be helpful if you could tell me what it means so I can look into it.

yes I agree it’s my responsibility to pay any tax owed under self assessment but if someone or the pension company have made a mistake and  that is going to cost me extra money say any interest surely I would have a case to claim that off them. 

I have copied what it has said on the letter to me below this message what I have found since looking in to it. So surly they are at fault for not following this process unless they have a valid reason not to. I don’t want to name the company as it not fair on them and could comeback on me. To me it says they should have paid the tax and clearly have not and have broken the rules. 

You have also requested an income payment of £278,000.00 before tax. We will tax this as earned income, and pay you the amount after tax has been deducted.

If this is your first income payment since opening your Account, HMRC rules mean that we have to tax it on a Month 1 basis. This may mean you pay more tax on your first payment than you will on later payments. We will send details of your income payments to our tax office, 

The bit I have put in italics and bold is the sort of warning @dunstonh is talking about.  What they are doing is warning about the usual situation where more tax is deducted than should be deducted.  It is the usual issue on these boards and gives rise to guidance on how to claim back the extra tax.  If you ask them what happened I think you should quote this warning back at them because it would make you think they might deduct too much tax not too little.

The mention of a Month 1 basis doesn't really help with the tax code they are going to use - I don't think it excludes using a BR code but perhaps one of the tax experts on here can comment on that.

I doubt very much whether they will take responsibility for any of the tax due - what they did makes no difference to how much tax you have to pay - it only affects how it is collected.  As to interest well maybe they will accept that if they had not given you the possible overpayment of tax warning and the we have deducted the right amount of tax assurance then you would not have spent the money you should have held back for the ultimate tax bill.  In that case the fact that you will have to pay interest on that tax bill could be laid at their door.  It is arguable.  The result I would expect from any complaint you may make would be a payment for distress and inconvenience which may be £50 or £100 or so.

luckily at the moment HMRC have said I will not get any Penalties or interest, put on it as long as I pay £100 a month until a outcome is made.
I have to wait now until the pension company get back to me as I have sent a letter asking them to investigate it as to way all the tax was not payed when it’s their responsibility to ensure that all the tax was paid before I received any money. 

I did a payment plan with HMRC what would mean that the payments I can afford would cause the interest to be over £100000. So if they have made a mistake it could be in their interest to help me to clear the tax payment. 

At the end of the day I can Challenge them and if it’s not resolved take it to the ombudsman if there is a case. 

Have you it in writing that no interest will be charged?. There are some unique circumstances where HMRC will give up interest that is legally due and this scenario is not one of them.

The advice HMRC gave for you to contact the pension company is also incorrect. The only people who can hold the pension company to account is HMRC and as I said earlier they won't in your situation.

Agree with this.  Highly unlikely there will be no interest charged.

And I really don't understand what you are ultimately hoping to achieve from the pension company.

Dazed_and_C0nfused said:

TheSpectator said:

Hendog said:

DRS1 said:

Hendog said:

dunstonh said:

I guess that is why HMRC have told me to speak to them about it and ask them to investigate it. 

But what do you hope to get from it?

They may well say they could have done it that way but employed the other way, but under the rules of self-assessment, you are responsible for your own tax declarations to HMRC and there is no way for them to know what tax you owe.  They are not advisers. It isn't their role to advise you.  Just the usual generic risk warnings for you to read at your convenience.   

Did you read those risk warnings and what do they say about tax?
Maybe you can name the pension provider as there is a good probability that someone here has access to their risk warnings.

No I’ve not read any risk warnings and don’t really know what you mean by risk warnings.  Would be helpful if you could tell me what it means so I can look into it.

yes I agree it’s my responsibility to pay any tax owed under self assessment but if someone or the pension company have made a mistake and  that is going to cost me extra money say any interest surely I would have a case to claim that off them. 

I have copied what it has said on the letter to me below this message what I have found since looking in to it. So surly they are at fault for not following this process unless they have a valid reason not to. I don’t want to name the company as it not fair on them and could comeback on me. To me it says they should have paid the tax and clearly have not and have broken the rules. 

You have also requested an income payment of £278,000.00 before tax. We will tax this as earned income, and pay you the amount after tax has been deducted.

If this is your first income payment since opening your Account, HMRC rules mean that we have to tax it on a Month 1 basis. This may mean you pay more tax on your first payment than you will on later payments. We will send details of your income payments to our tax office, 

The bit I have put in italics and bold is the sort of warning @dunstonh is talking about.  What they are doing is warning about the usual situation where more tax is deducted than should be deducted.  It is the usual issue on these boards and gives rise to guidance on how to claim back the extra tax.  If you ask them what happened I think you should quote this warning back at them because it would make you think they might deduct too much tax not too little.

The mention of a Month 1 basis doesn't really help with the tax code they are going to use - I don't think it excludes using a BR code but perhaps one of the tax experts on here can comment on that.

I doubt very much whether they will take responsibility for any of the tax due - what they did makes no difference to how much tax you have to pay - it only affects how it is collected.  As to interest well maybe they will accept that if they had not given you the possible overpayment of tax warning and the we have deducted the right amount of tax assurance then you would not have spent the money you should have held back for the ultimate tax bill.  In that case the fact that you will have to pay interest on that tax bill could be laid at their door.  It is arguable.  The result I would expect from any complaint you may make would be a payment for distress and inconvenience which may be £50 or £100 or so.

luckily at the moment HMRC have said I will not get any Penalties or interest, put on it as long as I pay £100 a month until a outcome is made.
I have to wait now until the pension company get back to me as I have sent a letter asking them to investigate it as to way all the tax was not payed when it’s their responsibility to ensure that all the tax was paid before I received any money. 

I did a payment plan with HMRC what would mean that the payments I can afford would cause the interest to be over £100000. So if they have made a mistake it could be in their interest to help me to clear the tax payment. 

At the end of the day I can Challenge them and if it’s not resolved take it to the ombudsman if there is a case. 

Have you it in writing that no interest will be charged?. There are some unique circumstances where HMRC will give up interest that is legally due and this scenario is not one of them.

The advice HMRC gave for you to contact the pension company is also incorrect. The only people who can hold the pension company to account is HMRC and as I said earlier they won't in your situation.

Agree with this.  Highly unlikely there will be no interest charged.

And I really don't understand what you are ultimately hoping to achieve from the pension company.

Dazed_and_C0nfused said:

TheSpectator said:

Hendog said:

DRS1 said:

Hendog said:

dunstonh said:

I guess that is why HMRC have told me to speak to them about it and ask them to investigate it. 

But what do you hope to get from it?

They may well say they could have done it that way but employed the other way, but under the rules of self-assessment, you are responsible for your own tax declarations to HMRC and there is no way for them to know what tax you owe.  They are not advisers. It isn't their role to advise you.  Just the usual generic risk warnings for you to read at your convenience.   

Did you read those risk warnings and what do they say about tax?
Maybe you can name the pension provider as there is a good probability that someone here has access to their risk warnings.

No I’ve not read any risk warnings and don’t really know what you mean by risk warnings.  Would be helpful if you could tell me what it means so I can look into it.

yes I agree it’s my responsibility to pay any tax owed under self assessment but if someone or the pension company have made a mistake and  that is going to cost me extra money say any interest surely I would have a case to claim that off them. 

I have copied what it has said on the letter to me below this message what I have found since looking in to it. So surly they are at fault for not following this process unless they have a valid reason not to. I don’t want to name the company as it not fair on them and could comeback on me. To me it says they should have paid the tax and clearly have not and have broken the rules. 

You have also requested an income payment of £278,000.00 before tax. We will tax this as earned income, and pay you the amount after tax has been deducted.

If this is your first income payment since opening your Account, HMRC rules mean that we have to tax it on a Month 1 basis. This may mean you pay more tax on your first payment than you will on later payments. We will send details of your income payments to our tax office, 

The bit I have put in italics and bold is the sort of warning @dunstonh is talking about.  What they are doing is warning about the usual situation where more tax is deducted than should be deducted.  It is the usual issue on these boards and gives rise to guidance on how to claim back the extra tax.  If you ask them what happened I think you should quote this warning back at them because it would make you think they might deduct too much tax not too little.

The mention of a Month 1 basis doesn't really help with the tax code they are going to use - I don't think it excludes using a BR code but perhaps one of the tax experts on here can comment on that.

I doubt very much whether they will take responsibility for any of the tax due - what they did makes no difference to how much tax you have to pay - it only affects how it is collected.  As to interest well maybe they will accept that if they had not given you the possible overpayment of tax warning and the we have deducted the right amount of tax assurance then you would not have spent the money you should have held back for the ultimate tax bill.  In that case the fact that you will have to pay interest on that tax bill could be laid at their door.  It is arguable.  The result I would expect from any complaint you may make would be a payment for distress and inconvenience which may be £50 or £100 or so.

luckily at the moment HMRC have said I will not get any Penalties or interest, put on it as long as I pay £100 a month until a outcome is made.
I have to wait now until the pension company get back to me as I have sent a letter asking them to investigate it as to way all the tax was not payed when it’s their responsibility to ensure that all the tax was paid before I received any money. 

I did a payment plan with HMRC what would mean that the payments I can afford would cause the interest to be over £100000. So if they have made a mistake it could be in their interest to help me to clear the tax payment. 

At the end of the day I can Challenge them and if it’s not resolved take it to the ombudsman if there is a case. 

Have you it in writing that no interest will be charged?. There are some unique circumstances where HMRC will give up interest that is legally due and this scenario is not one of them.

The advice HMRC gave for you to contact the pension company is also incorrect. The only people who can hold the pension company to account is HMRC and as I said earlier they won't in your situation.

Agree with this.  Highly unlikely there will be no interest charged.

And I really don't understand what you are ultimately hoping to achieve from the pension company.

To find out way I was put on a BR tax code

TheSpectator

Hendog said:

Dazed_and_C0nfused said:

TheSpectator said:

Hendog said:

DRS1 said:

Hendog said:

dunstonh said:

I guess that is why HMRC have told me to speak to them about it and ask them to investigate it. 

But what do you hope to get from it?

They may well say they could have done it that way but employed the other way, but under the rules of self-assessment, you are responsible for your own tax declarations to HMRC and there is no way for them to know what tax you owe.  They are not advisers. It isn't their role to advise you.  Just the usual generic risk warnings for you to read at your convenience.   

Did you read those risk warnings and what do they say about tax?
Maybe you can name the pension provider as there is a good probability that someone here has access to their risk warnings.

No I’ve not read any risk warnings and don’t really know what you mean by risk warnings.  Would be helpful if you could tell me what it means so I can look into it.

yes I agree it’s my responsibility to pay any tax owed under self assessment but if someone or the pension company have made a mistake and  that is going to cost me extra money say any interest surely I would have a case to claim that off them. 

I have copied what it has said on the letter to me below this message what I have found since looking in to it. So surly they are at fault for not following this process unless they have a valid reason not to. I don’t want to name the company as it not fair on them and could comeback on me. To me it says they should have paid the tax and clearly have not and have broken the rules. 

You have also requested an income payment of £278,000.00 before tax. We will tax this as earned income, and pay you the amount after tax has been deducted.

If this is your first income payment since opening your Account, HMRC rules mean that we have to tax it on a Month 1 basis. This may mean you pay more tax on your first payment than you will on later payments. We will send details of your income payments to our tax office, 

The bit I have put in italics and bold is the sort of warning @dunstonh is talking about.  What they are doing is warning about the usual situation where more tax is deducted than should be deducted.  It is the usual issue on these boards and gives rise to guidance on how to claim back the extra tax.  If you ask them what happened I think you should quote this warning back at them because it would make you think they might deduct too much tax not too little.

The mention of a Month 1 basis doesn't really help with the tax code they are going to use - I don't think it excludes using a BR code but perhaps one of the tax experts on here can comment on that.

I doubt very much whether they will take responsibility for any of the tax due - what they did makes no difference to how much tax you have to pay - it only affects how it is collected.  As to interest well maybe they will accept that if they had not given you the possible overpayment of tax warning and the we have deducted the right amount of tax assurance then you would not have spent the money you should have held back for the ultimate tax bill.  In that case the fact that you will have to pay interest on that tax bill could be laid at their door.  It is arguable.  The result I would expect from any complaint you may make would be a payment for distress and inconvenience which may be £50 or £100 or so.

luckily at the moment HMRC have said I will not get any Penalties or interest, put on it as long as I pay £100 a month until a outcome is made.
I have to wait now until the pension company get back to me as I have sent a letter asking them to investigate it as to way all the tax was not payed when it’s their responsibility to ensure that all the tax was paid before I received any money. 

I did a payment plan with HMRC what would mean that the payments I can afford would cause the interest to be over £100000. So if they have made a mistake it could be in their interest to help me to clear the tax payment. 

At the end of the day I can Challenge them and if it’s not resolved take it to the ombudsman if there is a case. 

Have you it in writing that no interest will be charged?. There are some unique circumstances where HMRC will give up interest that is legally due and this scenario is not one of them.

The advice HMRC gave for you to contact the pension company is also incorrect. The only people who can hold the pension company to account is HMRC and as I said earlier they won't in your situation.

Agree with this.  Highly unlikely there will be no interest charged.

And I really don't understand what you are ultimately hoping to achieve from the pension company.

Dazed_and_C0nfused said:

TheSpectator said:

Hendog said:

DRS1 said:

Hendog said:

dunstonh said:

I guess that is why HMRC have told me to speak to them about it and ask them to investigate it. 

But what do you hope to get from it?

They may well say they could have done it that way but employed the other way, but under the rules of self-assessment, you are responsible for your own tax declarations to HMRC and there is no way for them to know what tax you owe.  They are not advisers. It isn't their role to advise you.  Just the usual generic risk warnings for you to read at your convenience.   

Did you read those risk warnings and what do they say about tax?
Maybe you can name the pension provider as there is a good probability that someone here has access to their risk warnings.

No I’ve not read any risk warnings and don’t really know what you mean by risk warnings.  Would be helpful if you could tell me what it means so I can look into it.

yes I agree it’s my responsibility to pay any tax owed under self assessment but if someone or the pension company have made a mistake and  that is going to cost me extra money say any interest surely I would have a case to claim that off them. 

I have copied what it has said on the letter to me below this message what I have found since looking in to it. So surly they are at fault for not following this process unless they have a valid reason not to. I don’t want to name the company as it not fair on them and could comeback on me. To me it says they should have paid the tax and clearly have not and have broken the rules. 

You have also requested an income payment of £278,000.00 before tax. We will tax this as earned income, and pay you the amount after tax has been deducted.

If this is your first income payment since opening your Account, HMRC rules mean that we have to tax it on a Month 1 basis. This may mean you pay more tax on your first payment than you will on later payments. We will send details of your income payments to our tax office, 

The bit I have put in italics and bold is the sort of warning @dunstonh is talking about.  What they are doing is warning about the usual situation where more tax is deducted than should be deducted.  It is the usual issue on these boards and gives rise to guidance on how to claim back the extra tax.  If you ask them what happened I think you should quote this warning back at them because it would make you think they might deduct too much tax not too little.

The mention of a Month 1 basis doesn't really help with the tax code they are going to use - I don't think it excludes using a BR code but perhaps one of the tax experts on here can comment on that.

I doubt very much whether they will take responsibility for any of the tax due - what they did makes no difference to how much tax you have to pay - it only affects how it is collected.  As to interest well maybe they will accept that if they had not given you the possible overpayment of tax warning and the we have deducted the right amount of tax assurance then you would not have spent the money you should have held back for the ultimate tax bill.  In that case the fact that you will have to pay interest on that tax bill could be laid at their door.  It is arguable.  The result I would expect from any complaint you may make would be a payment for distress and inconvenience which may be £50 or £100 or so.

luckily at the moment HMRC have said I will not get any Penalties or interest, put on it as long as I pay £100 a month until a outcome is made.
I have to wait now until the pension company get back to me as I have sent a letter asking them to investigate it as to way all the tax was not payed when it’s their responsibility to ensure that all the tax was paid before I received any money. 

I did a payment plan with HMRC what would mean that the payments I can afford would cause the interest to be over £100000. So if they have made a mistake it could be in their interest to help me to clear the tax payment. 

At the end of the day I can Challenge them and if it’s not resolved take it to the ombudsman if there is a case. 

Have you it in writing that no interest will be charged?. There are some unique circumstances where HMRC will give up interest that is legally due and this scenario is not one of them.

The advice HMRC gave for you to contact the pension company is also incorrect. The only people who can hold the pension company to account is HMRC and as I said earlier they won't in your situation.

Agree with this.  Highly unlikely there will be no interest charged.

And I really don't understand what you are ultimately hoping to achieve from the pension company.

Dazed_and_C0nfused said:

TheSpectator said:

Hendog said:

DRS1 said:

Hendog said:

dunstonh said:

I guess that is why HMRC have told me to speak to them about it and ask them to investigate it. 

But what do you hope to get from it?

They may well say they could have done it that way but employed the other way, but under the rules of self-assessment, you are responsible for your own tax declarations to HMRC and there is no way for them to know what tax you owe.  They are not advisers. It isn't their role to advise you.  Just the usual generic risk warnings for you to read at your convenience.   

Did you read those risk warnings and what do they say about tax?
Maybe you can name the pension provider as there is a good probability that someone here has access to their risk warnings.

No I’ve not read any risk warnings and don’t really know what you mean by risk warnings.  Would be helpful if you could tell me what it means so I can look into it.

yes I agree it’s my responsibility to pay any tax owed under self assessment but if someone or the pension company have made a mistake and  that is going to cost me extra money say any interest surely I would have a case to claim that off them. 

I have copied what it has said on the letter to me below this message what I have found since looking in to it. So surly they are at fault for not following this process unless they have a valid reason not to. I don’t want to name the company as it not fair on them and could comeback on me. To me it says they should have paid the tax and clearly have not and have broken the rules. 

You have also requested an income payment of £278,000.00 before tax. We will tax this as earned income, and pay you the amount after tax has been deducted.

If this is your first income payment since opening your Account, HMRC rules mean that we have to tax it on a Month 1 basis. This may mean you pay more tax on your first payment than you will on later payments. We will send details of your income payments to our tax office, 

The bit I have put in italics and bold is the sort of warning @dunstonh is talking about.  What they are doing is warning about the usual situation where more tax is deducted than should be deducted.  It is the usual issue on these boards and gives rise to guidance on how to claim back the extra tax.  If you ask them what happened I think you should quote this warning back at them because it would make you think they might deduct too much tax not too little.

The mention of a Month 1 basis doesn't really help with the tax code they are going to use - I don't think it excludes using a BR code but perhaps one of the tax experts on here can comment on that.

I doubt very much whether they will take responsibility for any of the tax due - what they did makes no difference to how much tax you have to pay - it only affects how it is collected.  As to interest well maybe they will accept that if they had not given you the possible overpayment of tax warning and the we have deducted the right amount of tax assurance then you would not have spent the money you should have held back for the ultimate tax bill.  In that case the fact that you will have to pay interest on that tax bill could be laid at their door.  It is arguable.  The result I would expect from any complaint you may make would be a payment for distress and inconvenience which may be £50 or £100 or so.

luckily at the moment HMRC have said I will not get any Penalties or interest, put on it as long as I pay £100 a month until a outcome is made.
I have to wait now until the pension company get back to me as I have sent a letter asking them to investigate it as to way all the tax was not payed when it’s their responsibility to ensure that all the tax was paid before I received any money. 

I did a payment plan with HMRC what would mean that the payments I can afford would cause the interest to be over £100000. So if they have made a mistake it could be in their interest to help me to clear the tax payment. 

At the end of the day I can Challenge them and if it’s not resolved take it to the ombudsman if there is a case. 

Have you it in writing that no interest will be charged?. There are some unique circumstances where HMRC will give up interest that is legally due and this scenario is not one of them.

The advice HMRC gave for you to contact the pension company is also incorrect. The only people who can hold the pension company to account is HMRC and as I said earlier they won't in your situation.

Agree with this.  Highly unlikely there will be no interest charged.

And I really don't understand what you are ultimately hoping to achieve from the pension company.

Dazed_and_C0nfused said:

TheSpectator said:

Hendog said:

DRS1 said:

Hendog said:

dunstonh said:

I guess that is why HMRC have told me to speak to them about it and ask them to investigate it. 

But what do you hope to get from it?

They may well say they could have done it that way but employed the other way, but under the rules of self-assessment, you are responsible for your own tax declarations to HMRC and there is no way for them to know what tax you owe.  They are not advisers. It isn't their role to advise you.  Just the usual generic risk warnings for you to read at your convenience.   

Did you read those risk warnings and what do they say about tax?
Maybe you can name the pension provider as there is a good probability that someone here has access to their risk warnings.

No I’ve not read any risk warnings and don’t really know what you mean by risk warnings.  Would be helpful if you could tell me what it means so I can look into it.

yes I agree it’s my responsibility to pay any tax owed under self assessment but if someone or the pension company have made a mistake and  that is going to cost me extra money say any interest surely I would have a case to claim that off them. 

I have copied what it has said on the letter to me below this message what I have found since looking in to it. So surly they are at fault for not following this process unless they have a valid reason not to. I don’t want to name the company as it not fair on them and could comeback on me. To me it says they should have paid the tax and clearly have not and have broken the rules. 

You have also requested an income payment of £278,000.00 before tax. We will tax this as earned income, and pay you the amount after tax has been deducted.

If this is your first income payment since opening your Account, HMRC rules mean that we have to tax it on a Month 1 basis. This may mean you pay more tax on your first payment than you will on later payments. We will send details of your income payments to our tax office, 

The bit I have put in italics and bold is the sort of warning @dunstonh is talking about.  What they are doing is warning about the usual situation where more tax is deducted than should be deducted.  It is the usual issue on these boards and gives rise to guidance on how to claim back the extra tax.  If you ask them what happened I think you should quote this warning back at them because it would make you think they might deduct too much tax not too little.

The mention of a Month 1 basis doesn't really help with the tax code they are going to use - I don't think it excludes using a BR code but perhaps one of the tax experts on here can comment on that.

I doubt very much whether they will take responsibility for any of the tax due - what they did makes no difference to how much tax you have to pay - it only affects how it is collected.  As to interest well maybe they will accept that if they had not given you the possible overpayment of tax warning and the we have deducted the right amount of tax assurance then you would not have spent the money you should have held back for the ultimate tax bill.  In that case the fact that you will have to pay interest on that tax bill could be laid at their door.  It is arguable.  The result I would expect from any complaint you may make would be a payment for distress and inconvenience which may be £50 or £100 or so.

luckily at the moment HMRC have said I will not get any Penalties or interest, put on it as long as I pay £100 a month until a outcome is made.
I have to wait now until the pension company get back to me as I have sent a letter asking them to investigate it as to way all the tax was not payed when it’s their responsibility to ensure that all the tax was paid before I received any money. 

I did a payment plan with HMRC what would mean that the payments I can afford would cause the interest to be over £100000. So if they have made a mistake it could be in their interest to help me to clear the tax payment. 

At the end of the day I can Challenge them and if it’s not resolved take it to the ombudsman if there is a case. 

Have you it in writing that no interest will be charged?. There are some unique circumstances where HMRC will give up interest that is legally due and this scenario is not one of them.

The advice HMRC gave for you to contact the pension company is also incorrect. The only people who can hold the pension company to account is HMRC and as I said earlier they won't in your situation.

Agree with this.  Highly unlikely there will be no interest charged.

And I really don't understand what you are ultimately hoping to achieve from the pension company.

To find out way I was put on a BR tax code

Seems we have come full circle. I'll bow out from this one now.

Hendog

TheSpectator said:

Hendog said:

Dazed_and_C0nfused said:

TheSpectator said:

Hendog said:

DRS1 said:

Hendog said:

dunstonh said:

I guess that is why HMRC have told me to speak to them about it and ask them to investigate it. 

But what do you hope to get from it?

They may well say they could have done it that way but employed the other way, but under the rules of self-assessment, you are responsible for your own tax declarations to HMRC and there is no way for them to know what tax you owe.  They are not advisers. It isn't their role to advise you.  Just the usual generic risk warnings for you to read at your convenience.   

Did you read those risk warnings and what do they say about tax?
Maybe you can name the pension provider as there is a good probability that someone here has access to their risk warnings.

No I’ve not read any risk warnings and don’t really know what you mean by risk warnings.  Would be helpful if you could tell me what it means so I can look into it.

yes I agree it’s my responsibility to pay any tax owed under self assessment but if someone or the pension company have made a mistake and  that is going to cost me extra money say any interest surely I would have a case to claim that off them. 

I have copied what it has said on the letter to me below this message what I have found since looking in to it. So surly they are at fault for not following this process unless they have a valid reason not to. I don’t want to name the company as it not fair on them and could comeback on me. To me it says they should have paid the tax and clearly have not and have broken the rules. 

You have also requested an income payment of £278,000.00 before tax. We will tax this as earned income, and pay you the amount after tax has been deducted.

If this is your first income payment since opening your Account, HMRC rules mean that we have to tax it on a Month 1 basis. This may mean you pay more tax on your first payment than you will on later payments. We will send details of your income payments to our tax office, 

The bit I have put in italics and bold is the sort of warning @dunstonh is talking about.  What they are doing is warning about the usual situation where more tax is deducted than should be deducted.  It is the usual issue on these boards and gives rise to guidance on how to claim back the extra tax.  If you ask them what happened I think you should quote this warning back at them because it would make you think they might deduct too much tax not too little.

The mention of a Month 1 basis doesn't really help with the tax code they are going to use - I don't think it excludes using a BR code but perhaps one of the tax experts on here can comment on that.

I doubt very much whether they will take responsibility for any of the tax due - what they did makes no difference to how much tax you have to pay - it only affects how it is collected.  As to interest well maybe they will accept that if they had not given you the possible overpayment of tax warning and the we have deducted the right amount of tax assurance then you would not have spent the money you should have held back for the ultimate tax bill.  In that case the fact that you will have to pay interest on that tax bill could be laid at their door.  It is arguable.  The result I would expect from any complaint you may make would be a payment for distress and inconvenience which may be £50 or £100 or so.

luckily at the moment HMRC have said I will not get any Penalties or interest, put on it as long as I pay £100 a month until a outcome is made.
I have to wait now until the pension company get back to me as I have sent a letter asking them to investigate it as to way all the tax was not payed when it’s their responsibility to ensure that all the tax was paid before I received any money. 

I did a payment plan with HMRC what would mean that the payments I can afford would cause the interest to be over £100000. So if they have made a mistake it could be in their interest to help me to clear the tax payment. 

At the end of the day I can Challenge them and if it’s not resolved take it to the ombudsman if there is a case. 

Have you it in writing that no interest will be charged?. There are some unique circumstances where HMRC will give up interest that is legally due and this scenario is not one of them.

The advice HMRC gave for you to contact the pension company is also incorrect. The only people who can hold the pension company to account is HMRC and as I said earlier they won't in your situation.

Agree with this.  Highly unlikely there will be no interest charged.

And I really don't understand what you are ultimately hoping to achieve from the pension company.

Dazed_and_C0nfused said:

TheSpectator said:

Hendog said:

DRS1 said:

Hendog said:

dunstonh said:

I guess that is why HMRC have told me to speak to them about it and ask them to investigate it. 

But what do you hope to get from it?

They may well say they could have done it that way but employed the other way, but under the rules of self-assessment, you are responsible for your own tax declarations to HMRC and there is no way for them to know what tax you owe.  They are not advisers. It isn't their role to advise you.  Just the usual generic risk warnings for you to read at your convenience.   

Did you read those risk warnings and what do they say about tax?
Maybe you can name the pension provider as there is a good probability that someone here has access to their risk warnings.

No I’ve not read any risk warnings and don’t really know what you mean by risk warnings.  Would be helpful if you could tell me what it means so I can look into it.

yes I agree it’s my responsibility to pay any tax owed under self assessment but if someone or the pension company have made a mistake and  that is going to cost me extra money say any interest surely I would have a case to claim that off them. 

I have copied what it has said on the letter to me below this message what I have found since looking in to it. So surly they are at fault for not following this process unless they have a valid reason not to. I don’t want to name the company as it not fair on them and could comeback on me. To me it says they should have paid the tax and clearly have not and have broken the rules. 

You have also requested an income payment of £278,000.00 before tax. We will tax this as earned income, and pay you the amount after tax has been deducted.

If this is your first income payment since opening your Account, HMRC rules mean that we have to tax it on a Month 1 basis. This may mean you pay more tax on your first payment than you will on later payments. We will send details of your income payments to our tax office, 

The bit I have put in italics and bold is the sort of warning @dunstonh is talking about.  What they are doing is warning about the usual situation where more tax is deducted than should be deducted.  It is the usual issue on these boards and gives rise to guidance on how to claim back the extra tax.  If you ask them what happened I think you should quote this warning back at them because it would make you think they might deduct too much tax not too little.

The mention of a Month 1 basis doesn't really help with the tax code they are going to use - I don't think it excludes using a BR code but perhaps one of the tax experts on here can comment on that.

I doubt very much whether they will take responsibility for any of the tax due - what they did makes no difference to how much tax you have to pay - it only affects how it is collected.  As to interest well maybe they will accept that if they had not given you the possible overpayment of tax warning and the we have deducted the right amount of tax assurance then you would not have spent the money you should have held back for the ultimate tax bill.  In that case the fact that you will have to pay interest on that tax bill could be laid at their door.  It is arguable.  The result I would expect from any complaint you may make would be a payment for distress and inconvenience which may be £50 or £100 or so.

luckily at the moment HMRC have said I will not get any Penalties or interest, put on it as long as I pay £100 a month until a outcome is made.
I have to wait now until the pension company get back to me as I have sent a letter asking them to investigate it as to way all the tax was not payed when it’s their responsibility to ensure that all the tax was paid before I received any money. 

I did a payment plan with HMRC what would mean that the payments I can afford would cause the interest to be over £100000. So if they have made a mistake it could be in their interest to help me to clear the tax payment. 

At the end of the day I can Challenge them and if it’s not resolved take it to the ombudsman if there is a case. 

Have you it in writing that no interest will be charged?. There are some unique circumstances where HMRC will give up interest that is legally due and this scenario is not one of them.

The advice HMRC gave for you to contact the pension company is also incorrect. The only people who can hold the pension company to account is HMRC and as I said earlier they won't in your situation.

Agree with this.  Highly unlikely there will be no interest charged.

And I really don't understand what you are ultimately hoping to achieve from the pension company.

Dazed_and_C0nfused said:

TheSpectator said:

Hendog said:

DRS1 said:

Hendog said:

dunstonh said:

I guess that is why HMRC have told me to speak to them about it and ask them to investigate it. 

But what do you hope to get from it?

They may well say they could have done it that way but employed the other way, but under the rules of self-assessment, you are responsible for your own tax declarations to HMRC and there is no way for them to know what tax you owe.  They are not advisers. It isn't their role to advise you.  Just the usual generic risk warnings for you to read at your convenience.   

Did you read those risk warnings and what do they say about tax?
Maybe you can name the pension provider as there is a good probability that someone here has access to their risk warnings.

No I’ve not read any risk warnings and don’t really know what you mean by risk warnings.  Would be helpful if you could tell me what it means so I can look into it.

yes I agree it’s my responsibility to pay any tax owed under self assessment but if someone or the pension company have made a mistake and  that is going to cost me extra money say any interest surely I would have a case to claim that off them. 

I have copied what it has said on the letter to me below this message what I have found since looking in to it. So surly they are at fault for not following this process unless they have a valid reason not to. I don’t want to name the company as it not fair on them and could comeback on me. To me it says they should have paid the tax and clearly have not and have broken the rules. 

You have also requested an income payment of £278,000.00 before tax. We will tax this as earned income, and pay you the amount after tax has been deducted.

If this is your first income payment since opening your Account, HMRC rules mean that we have to tax it on a Month 1 basis. This may mean you pay more tax on your first payment than you will on later payments. We will send details of your income payments to our tax office, 

The bit I have put in italics and bold is the sort of warning @dunstonh is talking about.  What they are doing is warning about the usual situation where more tax is deducted than should be deducted.  It is the usual issue on these boards and gives rise to guidance on how to claim back the extra tax.  If you ask them what happened I think you should quote this warning back at them because it would make you think they might deduct too much tax not too little.

The mention of a Month 1 basis doesn't really help with the tax code they are going to use - I don't think it excludes using a BR code but perhaps one of the tax experts on here can comment on that.

I doubt very much whether they will take responsibility for any of the tax due - what they did makes no difference to how much tax you have to pay - it only affects how it is collected.  As to interest well maybe they will accept that if they had not given you the possible overpayment of tax warning and the we have deducted the right amount of tax assurance then you would not have spent the money you should have held back for the ultimate tax bill.  In that case the fact that you will have to pay interest on that tax bill could be laid at their door.  It is arguable.  The result I would expect from any complaint you may make would be a payment for distress and inconvenience which may be £50 or £100 or so.

luckily at the moment HMRC have said I will not get any Penalties or interest, put on it as long as I pay £100 a month until a outcome is made.
I have to wait now until the pension company get back to me as I have sent a letter asking them to investigate it as to way all the tax was not payed when it’s their responsibility to ensure that all the tax was paid before I received any money. 

I did a payment plan with HMRC what would mean that the payments I can afford would cause the interest to be over £100000. So if they have made a mistake it could be in their interest to help me to clear the tax payment. 

At the end of the day I can Challenge them and if it’s not resolved take it to the ombudsman if there is a case. 

Have you it in writing that no interest will be charged?. There are some unique circumstances where HMRC will give up interest that is legally due and this scenario is not one of them.

The advice HMRC gave for you to contact the pension company is also incorrect. The only people who can hold the pension company to account is HMRC and as I said earlier they won't in your situation.

Agree with this.  Highly unlikely there will be no interest charged.

And I really don't understand what you are ultimately hoping to achieve from the pension company.

Dazed_and_C0nfused said:

TheSpectator said:

Hendog said:

DRS1 said:

Hendog said:

dunstonh said:

I guess that is why HMRC have told me to speak to them about it and ask them to investigate it. 

But what do you hope to get from it?

They may well say they could have done it that way but employed the other way, but under the rules of self-assessment, you are responsible for your own tax declarations to HMRC and there is no way for them to know what tax you owe.  They are not advisers. It isn't their role to advise you.  Just the usual generic risk warnings for you to read at your convenience.   

Did you read those risk warnings and what do they say about tax?
Maybe you can name the pension provider as there is a good probability that someone here has access to their risk warnings.

No I’ve not read any risk warnings and don’t really know what you mean by risk warnings.  Would be helpful if you could tell me what it means so I can look into it.

yes I agree it’s my responsibility to pay any tax owed under self assessment but if someone or the pension company have made a mistake and  that is going to cost me extra money say any interest surely I would have a case to claim that off them. 

I have copied what it has said on the letter to me below this message what I have found since looking in to it. So surly they are at fault for not following this process unless they have a valid reason not to. I don’t want to name the company as it not fair on them and could comeback on me. To me it says they should have paid the tax and clearly have not and have broken the rules. 

You have also requested an income payment of £278,000.00 before tax. We will tax this as earned income, and pay you the amount after tax has been deducted.

If this is your first income payment since opening your Account, HMRC rules mean that we have to tax it on a Month 1 basis. This may mean you pay more tax on your first payment than you will on later payments. We will send details of your income payments to our tax office, 

The bit I have put in italics and bold is the sort of warning @dunstonh is talking about.  What they are doing is warning about the usual situation where more tax is deducted than should be deducted.  It is the usual issue on these boards and gives rise to guidance on how to claim back the extra tax.  If you ask them what happened I think you should quote this warning back at them because it would make you think they might deduct too much tax not too little.

The mention of a Month 1 basis doesn't really help with the tax code they are going to use - I don't think it excludes using a BR code but perhaps one of the tax experts on here can comment on that.

I doubt very much whether they will take responsibility for any of the tax due - what they did makes no difference to how much tax you have to pay - it only affects how it is collected.  As to interest well maybe they will accept that if they had not given you the possible overpayment of tax warning and the we have deducted the right amount of tax assurance then you would not have spent the money you should have held back for the ultimate tax bill.  In that case the fact that you will have to pay interest on that tax bill could be laid at their door.  It is arguable.  The result I would expect from any complaint you may make would be a payment for distress and inconvenience which may be £50 or £100 or so.

luckily at the moment HMRC have said I will not get any Penalties or interest, put on it as long as I pay £100 a month until a outcome is made.
I have to wait now until the pension company get back to me as I have sent a letter asking them to investigate it as to way all the tax was not payed when it’s their responsibility to ensure that all the tax was paid before I received any money. 

I did a payment plan with HMRC what would mean that the payments I can afford would cause the interest to be over £100000. So if they have made a mistake it could be in their interest to help me to clear the tax payment. 

At the end of the day I can Challenge them and if it’s not resolved take it to the ombudsman if there is a case. 

Have you it in writing that no interest will be charged?. There are some unique circumstances where HMRC will give up interest that is legally due and this scenario is not one of them.

The advice HMRC gave for you to contact the pension company is also incorrect. The only people who can hold the pension company to account is HMRC and as I said earlier they won't in your situation.

Agree with this.  Highly unlikely there will be no interest charged.

And I really don't understand what you are ultimately hoping to achieve from the pension company.

To find out way I was put on a BR tax code

Seems we have come full circle. I'll bow out from this one now.

I know was hoping that someone could tell me why and what I should do. 

I have pick up a few bits 

Shadyocuk

I know you dont want to hear it , but it makes no difference why any tax code was used . No pension company would be in a position to know your complete tax affairs , only you would have known that. No matter what the outcome of your letter to the company you will have to pay the tax bill. Even IF the company decided to pay HMRC the difference between what they originaly deducted and what could have been deducted under month 1 , then the company will demand that YOU repay them the amount they "overpaid" YOU.

The amount of unpaid tax is not going to go away , and both HMRC and the pension company have much deeper pockets than you so will get the money back , even if that means petitioning for you to be declared bankrupt.

What you need to do is pay the tax bill , that your "no brainer of an idea" created, how you choose do it is up to you.
Get a different job for more income?? , Get a mortgage aginst the property ?? , Sell the property ??
I very much doubt that HMRC will accept £100 a month on a long term basis.

Shadyocuk

FIREDreamer said:

Shadyocuk said:

But regardless of what happened it will not effect the amount of tax that YOU will HAVE to pay , YOUR tax affairs are YOUR responsibility. 

Asuming the figures you have given are correct then you tax bill would be approx

total taxable income £278K +£12.5K = £290.5K

£ 50270@20%  £10054
£ 74870@40%  £29948
£165360@45% £74412
 
Total tax           £114414  (not sure how you ever expected it to be "only" £89K
less paid          £   (3000)
less paid          £ (55000)

Total shortfall   £ 56414

Why is £50,270 taxed at 20%? It should be the 20% band of £35,300 taxed at this rate I think.

The loss of the personal allowance shifts a further £12,570 (the personal allowance) into 45% I think in this case, not 20%? This increases the tax due by another £3,142 or thereabouts.

Yes I think you are right on that , I dont normaly even consider such high amounts of income!! 

Hendog

Shadyocuk said:

I know you dont want to hear it , but it makes no difference why any tax code was used . No pension company would be in a position to know your complete tax affairs , only you would have known that. No matter what the outcome of your letter to the company you will have to pay the tax bill. Even IF the company decided to pay HMRC the difference between what they originaly deducted and what could have been deducted under month 1 , then the company will demand that YOU repay them the amount they "overpaid" YOU.

The amount of unpaid tax is not going to go away , and both HMRC and the pension company have much deeper pockets than you so will get the money back , even if that means petitioning for you to be declared bankrupt.

What you need to do is pay the tax bill , that your "no brainer of an idea" created, how you choose do it is up to you.
Get a different job for more income?? , Get a mortgage aginst the property ?? , Sell the property ??
I very much doubt that HMRC will accept £100 a month on a long term basis.

My full Intention is to pay the tax bill if I have to I am not disputing that. 

I am disputing that my pension company did not follow the Law and  that they should have taken all Tax before paying me my money off which they have failed to do. 

Off course it makes a difference what tax code is used it changes how much tax you pay at that’s why there is a law in place that a pension company must take all tax duty before paying out any money. 

I even have a letter from my pension company stating that.
That is why they don’t  need to know my tax affairs because the law is in place that they use emergency tax of which they have failed to do. 

They may have deeper pockets but HMCR have already admitted there has been a technical issue and have told me to send a letter to my pension company asking them to investigate it. I have a right to investigate it and if I am not happy with the outcome I can take it to the ombudsman so I don’t need deep pockets. I am sure if someone has made a mistake the ombudsman will be in my favour that I should not have any extra costs due to my pension company breaking the law.

As to the bankruptcy higher paid job selling the house it is not even something I would consider doing until this has been fully investigated and when it has I will look at my options as I can pay a fair bit off.

I posted about it on here to hopefully find a Financial advisor who would know about it all or someone who has been in the same situation who could advise me.

It still might not be the pension company fault it could be HMRC 

I know you dont want to hear it , but it makes no difference why any tax code was used . No pension company would be in a position to know your complete tax affairs , only you would have known that. No matter what the outcome of your letter to the company you will have to pay the tax bill. Even IF the company decided to pay HMRC the difference between what they originaly deducted and what could have been deducted under month 1 , then the company will demand that YOU repay them the amount they "overpaid" YOU.

The amount of unpaid tax is not going to go away , and both HMRC and the pension company have much deeper pockets than you so will get the money back , even if that means petitioning for you to be declared bankrupt.

What you need to do is pay the tax bill , that your "no brainer of an idea" created, how you choose do it is up to you.
Get a different job for more income?? , Get a mortgage aginst the property ?? , Sell the property ??
I very much doubt that HMRC will accept £100 a month on a long term basis.

Shadyocuk said:

I know you dont want to hear it , but it makes no difference why any tax code was used . No pension company would be in a position to know your complete tax affairs , only you would have known that. No matter what the outcome of your letter to the company you will have to pay the tax bill. Even IF the company decided to pay HMRC the difference between what they originaly deducted and what could have been deducted under month 1 , then the company will demand that YOU repay them the amount they "overpaid" YOU.

The amount of unpaid tax is not going to go away , and both HMRC and the pension company have much deeper pockets than you so will get the money back , even if that means petitioning for you to be declared bankrupt.

What you need to do is pay the tax bill , that your "no brainer of an idea" created, how you choose do it is up to you.
Get a different job for more income?? , Get a mortgage aginst the property ?? , Sell the property ??
I very much doubt that HMRC will accept £100 a month on a long term basis.

BikingBud

Hendog said:

af1963 said:

If I had done it over 6 years you would have to add the cost of my rent to that as will what would have been 6 x 14,000 = 84,000 what would have made a £20,000 loss

Why would you still be paying rent after buying a house ?  ( that's what the 6 year mortgage payments are for )

sorry didn’t read in properly ( I am Dyslexic and didn’t take it all in properly)
Great way of looking at it. 

The only problem I would have had would have been getting a mortgage for various reasons. 

Do you have other debts or issues that prevented you getting a mortgage? 

What are you not disclosing or were not able to disclose?

I am not sure this is a pension problem now more a debt management issue.

molerat

As has been said earlier you may possibly get £20 - £100 from the provider as an apology and that will be for not explaining it correctly, nothing to do with the actual tax but they will not be paying that tax.  It is your responsibility to make sure the correct tax is paid, no one else's and if you were not certain how much that would be you should have employed a professional and not asked the provider, that is not in their remit.  BR can be the correct code to use for some pension lump sums and they deducted the correct tax for that code. To be honest HMRC are just fobbing you off, if they had not issued a tax code to the provider they have no idea what tax code should have been used and will be unaware of the precise terms of the withdrawal especially at front line CS level.    You are making an awful lot of stress and work for yourself which will have little to no effect on the outcome.

BikingBud

Hendog said:

Shadyocuk said:

I know you dont want to hear it , but it makes no difference why any tax code was used . No pension company would be in a position to know your complete tax affairs , only you would have known that. No matter what the outcome of your letter to the company you will have to pay the tax bill. Even IF the company decided to pay HMRC the difference between what they originaly deducted and what could have been deducted under month 1 , then the company will demand that YOU repay them the amount they "overpaid" YOU.

The amount of unpaid tax is not going to go away , and both HMRC and the pension company have much deeper pockets than you so will get the money back , even if that means petitioning for you to be declared bankrupt.

What you need to do is pay the tax bill , that your "no brainer of an idea" created, how you choose do it is up to you.
Get a different job for more income?? , Get a mortgage aginst the property ?? , Sell the property ??
I very much doubt that HMRC will accept £100 a month on a long term basis.

My full Intention is to pay the tax bill if I have to I am not disputing that. 

I am disputing that my pension company did not follow the Law and  that they should have taken all Tax before paying me my money off which they have failed to do. 

SNIP/SNIP as there was loads of repetition

I posted about it on here to hopefully find a Financial advisor who would know about it all or someone who has been in the same situation who could advise me.

I feel there has been lots of advice, from many different contributors to try and assist you. but you seem to focus on the pension company's role.

If I had six sources of income why and how can I expect any one of those income providers to know what I am getting from elsewhere or how it might impact upon my overall liability? The cannot be held to account and it cannot be deemed a failure to follow Law as you put it!

My (your) obligation is to ensure HMRC are made aware of all of those sources so they can review that overall liability and claim tax due under law.

The fact that you do not quite grasp what has been explained in different ways by different people and keep wanting to hear something different will not alter the facts.

Do not put all your trust in the Ombudsman!

I would now focus on mitigating the impact and considering route to protecting your home.