Tax Reclaim- pension withdrawal

Hi all. Can I ask what procedure everyone uses to help clients reclaim their tax from a pension withdrawal. At present we get them to sign a paper copy of the relevant form from HMRC (P55 etc) and then post to HMRC. Is there a way of doing this online as an agent. I think we did sign up to be an agent some time ago but could not see an option for this. I do not think we have had many successfully apply online themselves as the government gateway thing was a bit of a faff. Thanks in advance.


  • NathanNathan Member
    Not the answer you are looking for, but it might help.

    If you get the client to take a small withdrawal in month one and then take a larger withdrawal in month three. The provider has a chance to get the right tax code and doesn’t have to wait around for what potentially could be a lot of money.
  • edited July 31

    We send the client a letter to send to PAYE.

    I think if you act as a agent it would be to complete a self-assessment. It's unlikely to be worthwhile for you or the client to fall into self-assessment world if this is the only reason.

    The body of our letter template says:

    **Please be aware that I am currently making contributions into the above Pension Plan with XXXX through my employer, XXXX. Detail of my personal monthly payments for the previous tax year from 20xx-20xx onwards are enclosed.

    Please amend my personal tax code to reflect the additional higher rate tax relief that I should receive on my pension payments and also provide a refund of tax for previous years.

  • @Nathan thank you. I had read about this recently I think via an article on Professional Paraplanner - do you do this quite regularly for clients? @arongunningham , I am referring to the emergency tax code that is applied when a client takes their first lump sum withdrawal. Or, at the moment, we have a client taking all of his pension fund (11K) but will be taxed on this and we would normally then get them to sign the appropriate HMRC claim form and post it for them.

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