Reclaim emergency tax on pension withdrawal

Squint

Husband took out a single payment from his pension at the start of the current tax year.  He was not intending to draw down any more on the current tax year, so this is his sole income for the tax year. 

He tried to reclaim most of the tax as he understood the rules changed at the start of this tax year.  However HMRC won't refund without a p45 from his pension provider.  The pension provider won't provide a p45.

Has anyone had any success in getting refunded in the current tax year?

eskbanker

Which form did he submit, there are a variety covering different scenarios, including P55 for a pension that isn't emptied?

https://www.gov.uk/guidance/claim-back-tax-on-a-flexibly-accessed-pension-overpayment-p55

Marcon

Squint said:

Husband took out a single payment from his pension at the start of the current tax year.  He was not intending to draw down any more on the current tax year, so this is his sole income for the tax year. 

He tried to reclaim most of the tax as he understood the rules changed at the start of this tax year.  However HMRC won't refund without a p45 from his pension provider.  The pension provider won't provide a p45.

Has anyone had any success in getting refunded in the current tax year?

You've used the wrong form. It's a P55 (not any of the variants on that) you need - no P45 required. Link in the post above.

Squint

Thanks he used the p55 to claim but hmrc want a p45 from the pension provider who won't provide it during the current tax year. 

dunstonh

Squint said:

Thanks he used the p55 to claim but hmrc want a p45 from the pension provider who won't provide it during the current tax year. 

It sounds like he has either used the wrong form or input the wrong information.

The pension provider will not issue a P45 unless the pension is brought to zero.

Was this the online reclaim or did he download a form?

sheramber

When did he cease employment/

Squint

The pension wasn't brought to zero, which seems to be the issue.   He stopped work at the end of 2024 when he was made redundant.   His plan was to draw down a small amount to get him through to state retirement age as his health was making it hard to find work.

Dazed_and_C0nfused

Squint said:

The pension wasn't brought to zero, which seems to be the issue.   He stopped work at the end of 2024 when he was made redundant.   His plan was to draw down a small amount to get him through to state retirement age as his health was making it hard to find work.

A P45 isn't relevant in that case.

There seems to be two possible problems,

There was something on the form that was completed incorrectly.  Or it was the wrong form.

Or incompete on HMRC's part.

sheramber

Could it be a P45 for his employment ceasing?

eskbanker

Squint said:

He tried to reclaim most of the tax as he understood the rules changed at the start of this tax year.

Don't suppose it affects the main issue but what specifically was he thinking of here?

Dazed_and_C0nfused

sheramber said:

Could it be a P45 for his employment ceasing?

Could be, but HMRC assume employments have ended if several months go by without any Real Time Information submissions.

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye63025

He was not intending to draw down any more on the current tax year, so this is his sole income for the tax year.