Last year, in recognition of my 60th, I handed in my notice, finished work at the end of May, and enjoyed two fabulous trips to the US doing fun stuff. Well, fun to me! In between I did odd jobs for people, and by January '16 decided to withdraw £8k from my pension pot to use my personal tax allowance in full.
They messed up, misfiled the paperwork, admitted they had cocked up and apologised. I complained to the Financial Ombudsman and registered a complaint. The current financial tax year, when not overseas on holiday, I shall earn sufficient to fully utilise my personal allowance, so drawing down the £8k sum this year would give me a £1600 tax liability at the basic rate.
The provider sent a grovelling letter with a cheque for £200 in compensation. I duly returned it explaining patiently to them that I was not impressed by their level of service, and finally, four months after registering my complaint, they have now offered a cheque for £450! Subject to me returning the initial cheque. I returned this cheque two months ago, and their level of incompetence continues to amaze me.
Just out of devilment, I am tempted to pursue the complaint with the FOS, and wonder how much they will be fined, and if my compensation is likely to increase.
I should have been born a terrier because with some things I just won't let go!
Given that I have plenty of time, a stress free life, and several easy part time jobs, what would you do?
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>> Given that I have plenty of time, a stress free life, and several easy part
>> time jobs, what would you do?
Do you want to tell us about your easy part time jobs?
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Pocket the £450 and remain stress free I think, if your only loss has been being jerked around a bit.
But I might have misunderstood. Are you saying that you did not, in the end, draw down the £8,000, and therefore that to draw that £8,000 as you wished to do will cost you £8,000 in tax?
If that is the case, then why not start by writing back and saying that you want to draw this £8,000 and you expect them to pay a compensation amount equivalent to the tax you will have to pay, which you would not have been liable for had they performed their duties properly?
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Manatee, that is correct... They misfiled and forgot all about the £8k drawdown. To do so now in tax year 2016/17 would incur a tax charge of £1600 @ 20% tax.
In the previous year I would have received the full £8k and to add insult to injury those funds could have increased substantially given my current equity investments.
Duncan... Yes, I'm very fortunate, and know it, to have some easy part time jobs. Helping friends who are joiners, currently on a two week contract replacing an old wooden floor, and on sunny days like this, mowing lawns & gardening for several elderly customers. I submit an invoice each month and normally get paid within days. And very little travelling involved.
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I don't consider cutting grass in Turkey as little travelling old hand. O:-)
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I don't cut grass in Turkey MD, unless that is a very obscure euphemism.
I only play with grass at my friends in CA, and that is all legal & above board
Moving on .....
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Yes I know. No youth amism. Just me tired and bored and nodding off. It's been a long slog today. Need to give this work lark up tbh. Night.
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Pension provider screw up - Duncan
