Sadly, not quite.
For we must not forget HMRC.
The Telegraph reports that every saver who uses the new pension freedoms faces inaccurate tax charges, and will need to enter negotiations with HMRC to rectify the estimations.
People must supply a P45 to have the correct amount of tax deducted on their withdrawals. However, the forms are only issued when people leave employment or a pension has been paid out in full. Therefore those still in work, or who retired before the start of the tax year, will be unable to show a valid document and so must pay an "emergency" levy.
Ros Altmann, an independent pensions expert, said:
"A lot of people are going to get a nasty shock when they see how much tax is going to be deducted from their funds. The tax office has made it very difficult for pension companies to apply the right amount of tax - many people will be very angry.HMRC is insisting on the P45 form because it is the only document that details how much tax someone has paid so far that tax year.
This is clearly unfair and there should be a system where people can write to the tax office before they withdraw money."
In a statement, an HMRC spokesman said:
"Claimants presenting their 2015/16 P45 to their pension provider will pay the correct tax. In the event that they don’t, any discrepancy will be settled within 30 days of HMRC being notified."Methinks 30 days is a tad optimistic, given how many people might be rushing to cash in some of their pensions!
Tax does have to be taxing.
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