Lump sum reduced

Ayr_Rage

The amount was estimated incorrectly and what you were paid is the correct amount.

It is all tax free unless they are showing a deduction for tax paid.

They have apologised and paid you a goodwill gesture.

chrishell76

Ayr_Rage said:

The amount was estimated incorrectly and what you were paid is the correct amount.

It is all tax free unless they are showing a deduction for tax paid.

They have apologised and paid you a goodwill gesture.

Yes but they are still saying it was due to tax, there should be no tax involved!  If they’ve made an error in the estimation then say that rather than an implausible excuse.  And how do you even get an estimate that wrong (£4k)?

Ayr_Rage

chrishell76 said:

Ayr_Rage said:

The amount was estimated incorrectly and what you were paid is the correct amount.

It is all tax free unless they are showing a deduction for tax paid.

They have apologised and paid you a goodwill gesture.

Yes but they are still saying it was due to tax, there should be no tax involved!  If they’ve made an error in the estimation then say that rather than an implausible excuse.  And how do you even get an estimate that wrong (£4k)?

Have you actually got ANY evidence that tax was deducted?

You get something wrong by making a keying error or using the wrong software.

chrishell76

Ayr_Rage said:

chrishell76 said:

Ayr_Rage said:

The amount was estimated incorrectly and what you were paid is the correct amount.

It is all tax free unless they are showing a deduction for tax paid.

They have apologised and paid you a goodwill gesture.

Yes but they are still saying it was due to tax, there should be no tax involved!  If they’ve made an error in the estimation then say that rather than an implausible excuse.  And how do you even get an estimate that wrong (£4k)?

Have you actually got ANY evidence that tax was deducted?

You get something wrong by making a keying error or using the wrong software.

Did you read what they put? 

Here it is:-

“Upon review, we have identified an issue with the calculation of your benefits whereby the amount of tax free cash was overstated in your original quotation.

I read this that they’ve deducted for tax purposes? By all means correct me if you think otherwise. 

Hoenir

Ayr_Rage said:

chrishell76 said:

Ayr_Rage said:

The amount was estimated incorrectly and what you were paid is the correct amount.

It is all tax free unless they are showing a deduction for tax paid.

They have apologised and paid you a goodwill gesture.

Yes but they are still saying it was due to tax, there should be no tax involved!  If they’ve made an error in the estimation then say that rather than an implausible excuse.  And how do you even get an estimate that wrong (£4k)?

Have you actually got ANY evidence that tax was deducted?

You get something wrong by making a keying error or using the wrong software.

Front line customer service agents are probably guessing themselves if the official notification wasn't visible on the system at the time of the enquiry. If an error has been made in the process then it's most likely been referred to a higher level and been sitting in their pending tray waiting for review. 

Ayr_Rage

You should've had a statement showing IF any tax has been deducted.

All they have said in their last communication is that the amount of tax free cash was overstated.

Nowhere does it mention that tax has actually been deducted in anything you have quoted from them.

chrishell76

Ayr_Rage said:

You should've had a statement showing IF any tax has been deducted.

All they have said in their last communication is that the amount of tax free cash was overstated.

Nowhere does it mention that tax has actually been deducted in anything you have quoted from them.

No I haven’t had anything to say tax has been deducted. So they’ve just messed up in quite a big way then on the estimate. 

DRS1

Most of your pension is final salary based.  So you would normally have a base pension and a PCLS (the tax free lump sum).  The PCLS can be a variable - eg where you can commute part of your pension for a bigger PCLS.

I am not sure how a lump sum is calculated when it is paid on the grounds of serious ill health but I imagine there may be a difference in how the pension is turned into a lump sum versus how the PCLS is.  So maybe it is pension x 15 plus PCLS. The difference between the original estimate and the later calculation may simply be that they had too high a figure for the PCLS originally and too low a figure for the pension or indeed it may be as simple as the PCLS was £4k too high for some reason

Anyway my point is that it may have nothing to do with tax being deducted.  They are just using tax free lump sum instead of PCLS to refer to one part of the calculation.

It sounds as if you need to ask someone to explain how the calculation is done and I am afraid that will be the administrators.