UFPLS - why so difficult

[Skyedriver]

Just a bit of a rant so apologies in advance.

I've two sources of pension, one from a contracted out of SERPS time and the other a more recent SIPP with a different company

I'm taking smallish UFPLS sums when required from both but one is happy to communicate by email but seems to want to deduct tax at 40% despite my annual income being substantially less than the higher tax bracket, the other wants to communicate by post which delays everything.

Why does it have to be so complicated?

Actually considering transferring the first one into my SIPP at least there will be only one company to deal with.

[Mr Pointy]

I think the tax deduction is because HMRC assume you're going to be getting the same amount every month which looks as if you will be into HR tax over the year.

The communication issues are different though - you'll only solve that by moving to a different institution. I've just sorted out taking a UFPLS sum from IM by completing an online application & a couple of emails. Are they any benefits associated with the S32 pension which you would lose by moving? The one I have has a guaranteed annual increase which is useful.

[Skyedriver]

Thanks, yes could be the reason but as it's March, the last month of the tax year?
This just feels like I'm loaning HMRC a few hundred pounds until they decide in a few months time that I've overpaid.
The S32 pension does a regular increase but off hand I think it's 4% although it's not guaranteed
I'm waiting for a communication from the company to advise, typically they're maintaining radio silence.....

Edited by Skyedriver on Friday 12th March 14:21

[Mr Pointy]

Skyedriver said:

Thanks, yes could be the reason but as it's March, the last month of the tax year?
The S32 pension does a regular increase but off hand I think it's 4% although it's not guaranteed
I'm waiting for a communication from the company to advise, typically they're maintaining radio silence.....

I'm withdrawing less than the annual Personal Allowance & with only three weeks of the tax year I'm still getting pinged for a 20% deduction. I've yet to find out how to reclaim it; I'm not sure if I can just phone them up or if I have to wait & submit a SA return.

[Skyedriver]

Mr Pointy said:

Skyedriver said:

Thanks, yes could be the reason but as it's March, the last month of the tax year?
The S32 pension does a regular increase but off hand I think it's 4% although it's not guaranteed
I'm waiting for a communication from the company to advise, typically they're maintaining radio silence.....

I'm withdrawing less than the annual Personal Allowance & with only three weeks of the tax year I'm still getting pinged for a 20% deduction. I've yet to find out how to reclaim it; I'm not sure if I can just phone them up or if I have to wait & submit a SA return.

The tax code form for 20/21 says they'll review the tax paid after 5th April.
I received a refund in October (6 months after the end of the tax year 19/20) for £12.43

As I see it at the moment I will be due a refund of £450 but won't get that for 6 months!

Still waiting for an email reply to my query, ringing up there's a recorded message telling me to email...

[Skyedriver]

Update:
Revised quote received in the last hour with the amount taxed at 20%

[DaffyT4]

Mr Pointy said:

I'm withdrawing less than the annual Personal Allowance & with only three weeks of the tax year I'm still getting pinged for a 20% deduction. I've yet to find out how to reclaim it; I'm not sure if I can just phone them up or if I have to wait & submit a SA return.

You want Form P55 - it's all done online at HMRC and I think I got mine back within a couple of weeks of applying.