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  • FIRST POST
    • Angelajoy1961
    • By Angelajoy1961 7th Oct 17, 2:02 PM
    • 10Posts
    • 1Thanks
    Angelajoy1961
    How much tax will I pay ?
    • #1
    • 7th Oct 17, 2:02 PM
    How much tax will I pay ? 7th Oct 17 at 2:02 PM
    I have a drawdown pension and I have already taken 25% tax free this year but now want to take another £10,000. I have a personal allowance of £11500 so will my £10000 be tax free ?
Page 1
    • Silvertabby
    • By Silvertabby 7th Oct 17, 2:10 PM
    • 1,943 Posts
    • 2,472 Thanks
    Silvertabby
    • #2
    • 7th Oct 17, 2:10 PM
    • #2
    • 7th Oct 17, 2:10 PM
    Yes, as long as you have no other taxable income.

    Have you told HMRC to apply your tax code to your pension?
    • Angelajoy1961
    • By Angelajoy1961 7th Oct 17, 2:13 PM
    • 10 Posts
    • 1 Thanks
    Angelajoy1961
    • #3
    • 7th Oct 17, 2:13 PM
    • #3
    • 7th Oct 17, 2:13 PM
    I'm assuming that was done years ago when I got my pension ?
    • xylophone
    • By xylophone 7th Oct 17, 2:39 PM
    • 23,695 Posts
    • 13,810 Thanks
    xylophone
    • #4
    • 7th Oct 17, 2:39 PM
    • #4
    • 7th Oct 17, 2:39 PM
    I'm assuming that was done years ago when I got my pension ?
    Can you explain the above?

    http://forums.moneysavingexpert.com/showthread.php?p=73229106#post73229106

    I receive esa, child benefit, child tax credit, housing and council tax benefit and DLA
    Had you considered the effect on your benefits?

    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/417473/pension-flexibilities-dwp-benefits.pdf

    http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS91_Pension_Freedom_and_benefits_fcs.pdf?dtrk=tru e
    • davieg11
    • By davieg11 7th Oct 17, 3:16 PM
    • 256 Posts
    • 150 Thanks
    davieg11
    • #5
    • 7th Oct 17, 3:16 PM
    • #5
    • 7th Oct 17, 3:16 PM
    I doubt it will be tax free if your already earning thousands of pounds from the state. You'll then lose these benefits for a year when it flags up.
    • Angelajoy1961
    • By Angelajoy1961 7th Oct 17, 3:30 PM
    • 10 Posts
    • 1 Thanks
    Angelajoy1961
    • #6
    • 7th Oct 17, 3:30 PM
    • #6
    • 7th Oct 17, 3:30 PM
    I owed my mum £20,000 that she loaned me and my husband (now ex) when we bought our house. When we divorced the house was sold but we had negative equatity so I got nothing. As soon as I could take some money out of my pension I took it out and paid her back some of what I owed. She now needs to do some work on her house so I want to pay her back the rest of what I owe her. She is 83 and is having panic attacks about her house needing the work and I want to stop feeling guilty about the money I still owe her !
    • Angelajoy1961
    • By Angelajoy1961 7th Oct 17, 3:32 PM
    • 10 Posts
    • 1 Thanks
    Angelajoy1961
    • #7
    • 7th Oct 17, 3:32 PM
    • #7
    • 7th Oct 17, 3:32 PM
    I also have some credit card debt that I want to clear with what's left.
    • xylophone
    • By xylophone 7th Oct 17, 4:33 PM
    • 23,695 Posts
    • 13,810 Thanks
    xylophone
    • #8
    • 7th Oct 17, 4:33 PM
    • #8
    • 7th Oct 17, 4:33 PM
    You have seen http://forums.moneysavingexpert.com/showthread.php?p=73229106#post73229106
    • xylophone
    • By xylophone 7th Oct 17, 4:36 PM
    • 23,695 Posts
    • 13,810 Thanks
    xylophone
    • #9
    • 7th Oct 17, 4:36 PM
    • #9
    • 7th Oct 17, 4:36 PM
    Read links in 4 above.
    • enthusiasticsaver
    • By enthusiasticsaver 8th Oct 17, 12:19 AM
    • 4,870 Posts
    • 9,198 Thanks
    enthusiasticsaver
    Any pension withdrawals over and above the 25% lump sum are liable for tax. Obviously if you are not taking a monthly pension the withdrawals will be offset against your allowance.

    I think any pension withdrawals (including the TFLS) will affect benefit claims regardless of whether you used them to repay debt or not.
    3 days to go until early retirement. Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • sheramber
    • By sheramber 8th Oct 17, 12:09 PM
    • 4,024 Posts
    • 2,977 Thanks
    sheramber
    I'm assuming that was done years ago when I got my pension ?

    You say you got your pension years ago- can you explain if you took money out then?

    Any money you receive will affect your means tested benefits.

    Paying off debts that do not need to be paid will be considered deprivation of capital.
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