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25% Pension drawdown

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25% Pension drawdown

edited 30 November -1 at 1:00AM in Cutting Tax
7 replies 990 views
Avenger2Avenger2 Forumite
82 posts
edited 30 November -1 at 1:00AM in Cutting Tax
Hi
I had a 25% draw down when I was 55 2 years ago, to cut a long story short the pension company transferred my full pension (in error) into my account and notified HMRC complete with a tax deduction. I obviously let them know of their error and it was repaid in full and then the 25% was transferred.The Pension company also notified HMRC of their mistake 3 times. However the full amount is still showing as income for that year and I therefore think that I have paid too much tax. I have contacted HMRC on numerous occasions highlighting that this was a mistake and has been rectified, they seem incapable of grasping the fact the information they currently hold on my account is incorrect. I have gone through the official complaint procedure 3 times and every time they seemed more concerned with closing the complaint. The last conversation I had earlier this week centered around them telling me that they had never heard about being able to draw down 25% tax free at 55!! I am now waiting for follow up call from them! Has anyone had a similar experience and what I can do next?
Thanks

Replies

  • Dazed_and_confusedDazed_and_confused Forumite
    6.5K posts
    Uniform Washer
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    Can you explain why you think you have paid too much tax?

    If the original erroneous payment was returned and they then paid the 25% TFLS how does this affect your other income?

    And how did the pension company notify HMRC?

    I don't recollect anyone posting about this with a pension but normally the company (employer) making the mistake has to send HMRC revised Real Time Information reports. Have they done this?
  • Avenger2Avenger2 Forumite
    82 posts
    Its showing the full pension amount as part of my income for that year. I dint earn anywhere near that, but would my tax code be based on the income for the year?
    The pension company notified them them on line, and then sent me a screen shot, my accountant was satisfied that they had sent the correct notification. Yes they have.
  • sherambersheramber Forumite
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    Sixth Anniversary 1,000 Posts Name Dropper
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    A re you saying
    The pension company paid you X pension - Y tax = Z

    you repaid Z to the pension company?

    Did the pension company reclaim the tax Y form HMRC and put it back into your pension pot?
  • Avenger2Avenger2 Forumite
    82 posts
    Hi
    Yes the tax was paid back into my pension
  • agrinnallagrinnall
    23.3K posts
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    Avenger2 wrote: »
    Its showing the full pension amount as part of my income for that year. I dint earn anywhere near that, but would my tax code be based on the income for the year?


    Instead of leaving us to guess, why don't you give us some actual income figures and tell us what your tax code was in the year this happened and the year after? Or pay to see an accountant.
  • sherambersheramber Forumite
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    Sixth Anniversary 1,000 Posts Name Dropper
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    Avenger2 wrote: »
    Hi
    Yes the tax was paid back into my pension

    So you think HMRC have subsequently taxed on this amount?

    However the full amount is still showing as income for that year and I therefore think that I have paid too much tax.

    Where does it show as income?

    What year do you think it has affected your code number?

    What is that code number?

    How is that code number calculated?
  • unholyangelunholyangel Forumite
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    Avenger2 wrote: »
    Its showing the full pension amount as part of my income for that year. I dint earn anywhere near that, but would my tax code be based on the income for the year?
    The pension company notified them them on line, and then sent me a screen shot, my accountant was satisfied that they had sent the correct notification. Yes they have.

    Notified them online how? Have they specifically sent amended RTI information?

    Because HMRC still saying you earned the money indicates they have not received any amended figures. And unfortunately lots of payroll staff think they know what they're doing without actually bothering to check.

    But I would point out that if the figures HMRC have say you earned that amount then they most likely still say you paid the tax that was initially deducted from the payment too.
    Money doesn't solve poverty.....it creates it.
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