Upheld: incorrect tax reporting to HMRC; administrative error in pension withdrawal processing complaint against ReAssure Limited
Financial Ombudsman decision DRN-6251620 of 2026-05-08T00:00:00+00:00. incorrect tax reporting to HMRC; administrative error in pension withdrawal processing complaint against ReAssure Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6251620 |
|---|---|
| Decision date | 2026-05-08T00:00:00+00:00 |
| Firm | ReAssure Limited |
| Product | pension |
| Claim type | incorrect tax reporting to HMRC; administrative error in pension withdrawal processing |
| Outcome | Upheld |
| Remedy | ReAssure must: (1) Ensure the £6,000 payment is accurately reported to HMRC for the 2023/24 tax year (confirmed as completed on 5 May 2026); (2) Provide clear proof to Mrs M confirming when each withdrawal was reported to HMRC; (3) Pay simple interest at 8% per annum on the amount of any tax rebate Mrs M receives, calculated from the date the payment should have been reported until the date the rebate is actually received; (4) Pay an additional £500 in compensation for distress and inconvenience caused by the need to continue pursuing the matter, bringing the total compensation to £1,050 (in addition to the £550 already paid). |
Summary
Mrs M complained that ReAssure incorrectly reported her pension withdrawals to HMRC, resulting in additional tax payments. She made a £6,000 taxable withdrawal in March 2024, but ReAssure did not report it to HMRC until October 2024, in the wrong tax year. Additionally, ReAssure reported two identical payments of £6,822.89 in October 2024, creating further confusion. Despite multiple assurances from ReAssure that the March 2024 payment had been correctly reported, evidence from HMRC confirmed it had never been reported for the 2023/24 tax year. The ombudsman upheld the complaint, finding ReAssure's errors caused Mrs M approximately £3,369 in additional tax and significant distress. ReAssure was ordered to ensure correct reporting to HMRC, provide clear proof of all withdrawals, pay interest on any tax rebate received, and pay £500 additional compensation (total £1,050).
The Ombudsman's reasoning
The ombudsman found that ReAssure failed to correctly report Mrs M's £6,000 pension withdrawal made in March 2024 to HMRC in the correct tax year. Although ReAssure provided a P45 showing the payment was made in the 2023/24 tax year, multiple pieces of evidence from HMRC confirmed the payment was never reported for that tax year. The duplicate reporting of £6,822.89 in October 2024 was corrected, but the original £6,000 payment remained unreported. ReAssure's assertion that they had correctly reported the payment was contradicted by HMRC documentation and Mrs M's own evidence. Only after the ombudsman's intervention did ReAssure confirm they had submitted a prior year adjustment RTI report on 5 May 2026. The ombudsman was satisfied this finally resolved the reporting issue. The errors caused Mrs M significant stress, required her to pursue the matter extensively with both ReAssure and HMRC, and resulted in incorrect tax calculations and loss of tax allowances.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| ReAssure Limited, all decisions | 1,046 | 32% |
Source
Read the original decision on the Financial Ombudsman Service website