Tax Payed Tax Rebate

NorthernGeezer_2
NorthernGeezer_2 Posts: 153 Forumite
First Anniversary First Post Name Dropper Combo Breaker
in Pensions, annuities & retirement planning
March in the tax year is a good time to re-ask this question i think.

Can we make the following assumptions......................
That i am retired and receive no taxable income from any other source than my private pension.
That the amount i will take this financial year from my pension is the first drawdown and is below my tax threshold.
That my pension provider will tax this amount using an emergency code.

So, in a nut shell HMRC has an amount of my drawdown which i can now claim 100% back.
Do i have to wait till the next tax year to claim it back?
Can i do this online?
Do i use form P55 to do this?
How long does it usually take to receive your refund?

Looking forward to your comments :D

Comments

  • crv1963
    crv1963 Posts: 1,372 Forumite
    First Anniversary Name Dropper First Post
    My understanding is that if this is the only source of income then HMRC will issue to your Pension Provider a tax code assuming that you will draw the same amount each month from the pension.


    Therefore any emergency tax/ overpayment of tax will be refunded later in the tax year, probably reasonably quickly. If you draw below the Personal Allowance limit then there will be no tax to pay.
    CRV1963- Light bulb moment Sept 15- Planning the great escape- aka retirement!
  • Linton
    Linton Posts: 17,155 Forumite
    Name Dropper First Post First Anniversary Hung up my suit!
    NorthernGeezer wrote: »
    March in the tax year is a good time to re-ask this question i think.

    Can we make the following assumptions......................
    That i am retired and receive no taxable income from any other source than my private pension.
    That the amount i will take this financial year from my pension is the first drawdown and is below my tax threshold.
    That my pension provider will tax this amount using an emergency code.

    So, in a nut shell HMRC has an amount of my drawdown which i can now claim 100% back.
    Do i have to wait till the next tax year to claim it back?
    Can i do this online?
    Do i use form P55 to do this?
    How long does it usually take to receive your refund?

    Looking forward to your comments :D

    You can get the refund before the end of the tax year - though given the date probably not for this tax year:

    https://www.gov.uk/claim-tax-refund/you-get-a-pension
  • ProDave
    ProDave Posts: 3,720 Forumite
    First Anniversary Name Dropper Combo Breaker First Post
    Can I ask a related question:

    You are self employed but earning below the threshold for tax.
    You draw ONE payment from your drawdown (not a regular monthly amount) that takes your income just up to the tax threshold.
    Your pension provider taxes you at the emergency rate.

    Is it best to fill out the form linked to above? OR just wait and fill in your tax return and claim the tax back via that?
  • Brynsam
    Brynsam Posts: 3,643 Forumite
    First Anniversary Name Dropper Combo Breaker First Post
    ProDave wrote: »
    Can I ask a related question:

    You are self employed but earning below the threshold for tax.
    You draw ONE payment from your drawdown (not a regular monthly amount) that takes your income just up to the tax threshold.
    Your pension provider taxes you at the emergency rate.

    Is it best to fill out the form linked to above? OR just wait and fill in your tax return and claim the tax back via that?

    Depends how much tax you have to pay and how urgently you need it refunded.
  • ProDave
    ProDave Posts: 3,720 Forumite
    First Anniversary Name Dropper Combo Breaker First Post
    Brynsam wrote: »
    Depends how much tax you have to pay and how urgently you need it refunded.
    Assuming it was this time of year. I would be getting my tax return to fill in in just a few weeks. So assuming I submit my tax return promptly (I never see the point in waiting until the deadline) which method would get my tax refund quickest?
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
    Uniform Washer
    If you intend filling in the return promptly why would you bother doubling your work and filling in a second form?

    You would also end up in the situation where you could have to make changes to your return which will be even more work (if you apply for a refund separately and it's refunded from that claim you will then have to declare the refund on the return otherwise it would be refunded a second time from the tax return). So you might file a return and then have to amend it.
  • NorthernGeezer_2
    NorthernGeezer_2 Posts: 153 Forumite
    First Anniversary First Post Name Dropper Combo Breaker
    Assume I'm retired not self employed so no self assessment form to complete.
    I have no other income other than my pension and my intention is to never drawdown above my tax threshold.
    I realise that the mysterys of HMRC means they will tax my first drawdown probably with an emergency code and I will need to claim this back rather than wait for a refund.
    Is the P55 the right form and can I do this online.
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