Pension drawdown

amzcat123

I have 2 private pension pots 1 from past 1 from current employment - I decided to take out 4K but ticked the wrong box so it is not from the tax free amount. I noticed the mistake & conatcted the pension co. Howver they said it cant be changed. This was prior to reciving the money.

It was my mistale however it has now created an issue with tax - how much I can now put in due the MPAA rules. I have spoken with tax office & pen co but they have said its to late. I am not stopping work for another 4 years. Is there anything I can do?

molerat

Does the £10K limit actually impact you ?

There is no right to a cooling off period so reversing the transaction, which can be fairly complex, would be down to goodwill.

amzcat123

Thanks for the advice - yes as I was putting in more than this per year. Also it impacts what has been paid in this tax year - but this was not my intention. I have reached out to pen co by email / tel call / post to put in a complaint to see if they will assist further.

dunstonh

 I have reached out to pen co by email / tel call / post to put in a complaint to see if they will assist further.

Why are you making a complaint?

I cannot see any reasons for a complaint. The pension company have done nothing wrong, and HMRC have confirmed that drawdown does not benefit from a cooling-off period.

amzcat123

Due to the fact that it was a week before it was actioned & I called them to inform them & was told as it was prior to the action it could be resolved. I understand the regs however was hoping there was a solution. I was told that sometimes it can be classified differently. So just a last hope.

Marcon

https://forums.moneysavingexpert.com/discussion/comment/81886769#Comment_81886769

The MPAA applies from the date it was triggered. If you have the earnings/headroom to do so, you could add another £10K between now and the end of the current tax year.

I wouldn't be complaining to your pension provider. I'd be asking very, very nicely…you don't have right on your side!

amzcat123

Thanks all for the info & views. I knew it was a long shot but lesson learned however harsh it may seem. Rules would be good if they had a little more leeway. !!