HMRC’s call centre was backlogged with calls over concerns over the tax charges following pension reforms.
The platform received more than one million calls in a day with people anxious to find out what they would be charged if they cashed out their entire pension. However, with HMRC prioritising other calls for those who had just lost loved ones and other matters, many people were unable to get through.
Despite attempts to send callers to the government service set up for the reform, many were left in the dark regarding their pension.
HMRC confirmed that they were only able to take a “small number” of calls.
Pension Reforms
Under reforms, anyone aged over-55s can take unlimited amounts of cash directly from their funds without the need to buy an annuity income.
Newspaper, The Telegraph, reported however that those that took advantage of the reform were likely to face inaccurate tax deductions, especially on their first deduction if they did not have a p45. The publication also reported that those still in work will be charged "emergency" levies of up to 45%, even if they are not top-rate taxpayers.
HMRC did confirm however that once notified of the emergency tax, the money would be put back as a refund in 30 days.
Contact Us
If you require legal advice regarding your pension, if you wish to take advantage of the new pension reforms or if you believe that you require legal advice or representation regarding your will, contact us today using our online contact form.