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bigduckontax, Accountant
Category: Tax
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I received a lump sum payment on pension income that should

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I received a lump sum payment on pension income that should have been received for 5 years prior to 2014/15 when the company went bust and was taken over by the government. I was taxed at 20% but would not have paid tax on the pension income if received in the relevant years. I have just been told I am not eligible for any refund for those years. Is that correct?

Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.

My gut reaction is that you are being fobbed off by HMRC in the telephone call. The law in this only goes back over a century and is the rule in Bwllfa and Merthyr Dare Steam Collieries (1891) Ltd. v Pontypridd Waterworks Co. [1903] AC 426!

I would suggest that you confine your negotiations with HMRC to the written word. Write to them and point out that the payment received was for an earlier tax year and accordingly you are seeking to revise your tax position for that year. They will, naturally, not like it as they will loose revenue, but we were not put on this earth just to fill HMRC's coffers! If they argue ask them for the statutory authority upon which they base their ruling, NOT their manuals which frequently state the law as they would like it to be, not what it actually is!

I do hope that I have shown you a way forward in this matter.

Customer: replied 2 years ago.

Thanks! As an ex revenue officer myself I thought I was on the right track but the attitude but have waited since April for an answer! MMmm, methinks you are right....Thanks, ***** ***** proceed onwards.

I wouldn't worry. HMRC or the Inland Revenue have got my initial tax code wrong these 20 years. You could have knocked me down with a feather when this year they got it right, well almost! One year I had to write five letters before I discovered that they had assumed that I was in receipt of a basic State Pension, utterly oblivious of GPCs, SERPS and the State Secondary Pension despite being repeatedly appraised of the real situation!
As usual, it's just a question of plodding away as your letters rise through the hierarchy of the tax office until they reach a grade with a better understanding of tax than is currently being displayed!
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