Pension provider screwed up - how can I get redress

[QueenofClutter]

I'm fuming and need to make someone take responsibility for a right mess.

From October 2023 I have been getting a small private works pension that is administered by one of these independent companies. Right from the start I've had problems. It's a bit long winded so I won't go into the details but basically it looks like they sent incorrect details to HMRC and put me on the wrong tax code so I've not been paying enough tax on the money I get. HMRC tell me they aren't getting payment info for me from this company. The pension company tell me they are doing everything that HMRC require. This has been going on for over 2 years now and I'm at the end of my tether trying to get it sorted out.

I've tried making a complaint to the pension company but they aren't even following their own procedures and time lines.

I've also made a complaint to HMRC. They tell me it's the pension provider's responsibility to provide the correct information and they can't get involved.
I think HMRC should be more proactive in investigating the missing info (its got to be somewhere in the system, and I've given them all the details I have including copies of P60s so they should know exactly where to look)

So there's a bit of a stalemate. It's taking up loads of time going backwards and forwards with both of them blaming the other, and its stressing me out. I think both are at fault.

Has anyone ever got HMRC to admit they could do better, and do they ever pay compensation?

How can a private pensions management company be held to account for the unbelievable level of incompetence of their payroll and admin staff .

You can give information to HMRC for your tax code yourself. If you create an online account, there’s a tab for tax code where you can supply them information if you think it’s wrong.

HMRC can be dreadful however HMRC are not really at fault here. If they are not receiving the correct information from the pension provider they can only use what they are receiving. I think it is the pension provider you need to be pursuing.

If you are paying too much tax through PAYE during the year is it rectified at the end of the tax year when your P60 is produced?

As pp have said, you can create a personal tax account online and change your tax code yourself; it's reasonably straightforward to do. That's the best thing to do for the current tax year. Also double check the simple things, via your personal tax account, like is the right NI number being used everywhere - that's where misallocations often happen.

Re past years, HMRC have the P60s, so if they're not chasing you for the additional tax yet, then it's a case of sitting tight until they do; they are super slow but will get there eventually. You can use a tax calculator to work out what it will be (or put numbers on here and someone will help you with that) so you can save it and allow for the interest.

Ah sorry, I mis read, I see you are paying too little tax not too much. So are HMRC requesting the extra tax at the end of the year after receiving the P60? If so definitely tell them how much your pension income is and any other relevant income and they will adjust the tax code.

You contact the pension regulator.

All of this can be done online by yourself. I’m surprised HMRC haven’t already told you this given it’s been 2 years. Here’s the link to do so.
https://www.gov.uk/personal-tax-account

the tax code isn’t the providers responsibility it’s HMRC to provide the right code. Also we have some responsibility to check it too

I've done that - twice - but though the pension provider is showing on my online account it isn't being updated with any payment info. And to make things worse,it shows a different tax code to what's on my payslips and P60. I've asked HMRC to change the tax code but it gets changed back after a couple of months.

I've resorted to doing self assessments. HMRC have actually sent me a REBATE for 24/25 They are still unaware of this pension payment.so I still owe tax on that.

I know. I keep asking HMRC to send them a new code but it gets changed back after a couple of months.

You should be able to manually put in the payment details. On the photo I’ve attached, if I click on the bit I’ve circled it takes me to a new page where I can change the amount of my pension.
sorry- photo to follow!!

Photo

Pensions ombudsman?

The financial journalists in most newspapers can be very helpful, especially where two companies or entities are both saying “it’s them not us”. You can find them in online versions of the papers, so Times, Telegraph, Daily Mail, Guardian - worth an email and also worth telling both parties that you have asked xyz to investigate, there’s nothing like the prospect of public scrutiny to make them have a thorough review of their files/conduct.

same with your local MP, for some reason if you can get them interested, a letter with House of Commons letterhead seems to make them sit up and notice, despite there being very little an MP can actually do to them!

Given it is an underpayment of tax, it was me, I would just put the money aside and let them work it out in their own time. They'll (probably) get there in the end.