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Where Taxpayers and Advisers Meet

Help with tax paid on pension withdrawal in Administration period.

MichCat
Posts:39
Joined:Sat Dec 10, 2016 5:01 pm
Re: Help with tax paid on pension withdrawal in Administration period.

Postby MichCat » Mon Mar 20, 2017 2:07 pm

Do you think that I might have more luck trying to sort this via an accountant? I know that it would cost me for the advice, but if it's more likely to be successful then it might end up saving me money in the long run.
It is hard to say really, they may look more kindly on you, rather than an accountant, as they appear to have some ability to be a little flexible on the interpretation (as per that link to their manual). It is a bit of a long shot, so it may work out that the fee is wasted, but only you know if you feel that it would be worth it.

That said, there are other aspects of dealing with this income that you may prefer an accountant to deal with, for example the R185's if needed. If you do go the accountant route, do be very careful who you choose. STEP accountants are specialised in this type of work, so would probably be much more helpful to you than the average High Street accountant who may rarely get to experience this type of work.

Finally, and very importantly, you need to think about all of the stress and worry that this is causing you - would you feel happier paying someone to take on some of that burden?

chancooluk
Posts:8
Joined:Sat Mar 18, 2017 11:59 am

Re: Help with tax paid on pension withdrawal in Administration period.

Postby chancooluk » Mon Mar 20, 2017 6:43 pm

I've sent the letter to HMRC, I'm not holding out much hope though to be honest. I also asked for confirmation from Royal London concerning the date that they started to process the payment. Apparently it was processed the morning after my father died, less than 24 hours, with a clearing date of 5-days later...

I also contacted the Pension Advisory Service about the issue for their take on it, and the guy said he's heard nothing like this happening in over 20 years in the pensions industry. They have passed my query onto my local pension advice caseworker who will try and offer some help if everything goes sour. I'm not sure how much help the PAS can actually provide though.

Thanks again for your help!

MichCat
Posts:39
Joined:Sat Dec 10, 2016 5:01 pm

Re: Help with tax paid on pension withdrawal in Administration period.

Postby MichCat » Mon Mar 20, 2017 7:12 pm

I've sent the letter to HMRC, I'm not holding out much hope though to be honest. I also asked for confirmation from Royal London concerning the date that they started to process the payment. Apparently it was processed the morning after my father died, less than 24 hours, with a clearing date of 5-days later...

I also contacted the Pension Advisory Service about the issue for their take on it, and the guy said he's heard nothing like this happening in over 20 years in the pensions industry. They have passed my query onto my local pension advice caseworker who will try and offer some help if everything goes sour. I'm not sure how much help the PAS can actually provide though.

Thanks again for your help!
Yes, I assumed that it would be a very rare occurance and as such, maybe no precedent has been set by HMRC as yet. As you say, it will not be surprising if they say no, but it is certainly worth checking with them.

Do come back and let me know how you get on.... good luck!

chancooluk
Posts:8
Joined:Sat Mar 18, 2017 11:59 am

Re: Help with tax paid on pension withdrawal in Administration period.

Postby chancooluk » Wed May 03, 2017 2:27 pm

Hi MichCat.

Just replying to let you know that I received a response from HMRC to the letter I sent previously.

Thankfully it has worked! They have agreed to put the amount onto my fathers income tax for the year, which means that they are refunding the overpaid emergency tax (about £9.5k refunded!).

Thanks so much for your help. It really couldn't have gone any better.

MichCat
Posts:39
Joined:Sat Dec 10, 2016 5:01 pm

Re: Help with tax paid on pension withdrawal in Administration period.

Postby MichCat » Wed May 03, 2017 5:18 pm

I am so chuffed that it worked out for you... that has made my day! :P

chancooluk
Posts:8
Joined:Sat Mar 18, 2017 11:59 am

Re: Help with tax paid on pension withdrawal in Administration period.

Postby chancooluk » Wed May 03, 2017 8:24 pm

:D Not as chuffed as I am. :D . Thanks again mate.


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