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Big problem with P55 and expected future DB pension payments
PBStockport
Posts: 1 Newbie
Not sure if anybody else has fallen into this rabbit hole using P55 but sharing as a warning & would be good to hear any similar experiences.
I took £42,500 out of my flexible drawdown pension in October 2025 (it was all taxable as I already took tax free lump from the entire pension value a few years ago). I haven't taken any other funds out all year. AJBell used emergency tax code & took £17,503 tax
I filled out a P55 to claim the (large amount) overtax amount. All straightforward except bit below.
Now P55 specifically asks 'Do you expect to receive any income from any UK pension during the current year' ?. I DO expect two DB pensions to start in late March 2026 so I pressed YES.
The form then asks for the names of the pension providers & the expected amounts & the Pension PAYE reference. I easily pulled this together as I have completed all the nomination forms etc for these DB pensions & with a couple of quick calls to get the PAYE reference.
I submitted the form & 6 weeks later I got a letter from HMRC saying they can not deal with repayment until I :
a. Provide documentary evidence of my Pay and Tax details from the named pension providers.
b. Contact the DB pension providers to provide HMRC with a Full Payment Submission (FPS) with the pension details.
I phoned up HMRC to discuss & was told the P55 doesn't recognise 'future not previously used DB pension income' and treats it as 'already happened'. There is now apparently no way backwards from the 'system' chasing unexpected 'undeclared to HMRC based on PAYE reference codes' income from that form (I asked if they could just write 'future' next to the inputs but NO)
After long discussion they said to complete ANOTHER P55, but to say NO (which is technically me blatantly not being truthful) to the Expected UK Pension income. The old form will still be active but they will note that the documentation cannot be provided as the event hasn't happened.
In the new P55 I stuck the same pension income 'estimates' from before under the 'Do you expect any other income in the coming year, which hopefully doesn't raise the same red flag as putting it in the box where it should go !
Unfortunately the new form will go through another 6 weeks or so in 'the system'.
I took £42,500 out of my flexible drawdown pension in October 2025 (it was all taxable as I already took tax free lump from the entire pension value a few years ago). I haven't taken any other funds out all year. AJBell used emergency tax code & took £17,503 tax
I filled out a P55 to claim the (large amount) overtax amount. All straightforward except bit below.
Now P55 specifically asks 'Do you expect to receive any income from any UK pension during the current year' ?. I DO expect two DB pensions to start in late March 2026 so I pressed YES.
The form then asks for the names of the pension providers & the expected amounts & the Pension PAYE reference. I easily pulled this together as I have completed all the nomination forms etc for these DB pensions & with a couple of quick calls to get the PAYE reference.
I submitted the form & 6 weeks later I got a letter from HMRC saying they can not deal with repayment until I :
a. Provide documentary evidence of my Pay and Tax details from the named pension providers.
b. Contact the DB pension providers to provide HMRC with a Full Payment Submission (FPS) with the pension details.
I phoned up HMRC to discuss & was told the P55 doesn't recognise 'future not previously used DB pension income' and treats it as 'already happened'. There is now apparently no way backwards from the 'system' chasing unexpected 'undeclared to HMRC based on PAYE reference codes' income from that form (I asked if they could just write 'future' next to the inputs but NO)
After long discussion they said to complete ANOTHER P55, but to say NO (which is technically me blatantly not being truthful) to the Expected UK Pension income. The old form will still be active but they will note that the documentation cannot be provided as the event hasn't happened.
In the new P55 I stuck the same pension income 'estimates' from before under the 'Do you expect any other income in the coming year, which hopefully doesn't raise the same red flag as putting it in the box where it should go !
Unfortunately the new form will go through another 6 weeks or so in 'the system'.
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