Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • iceboy
    • By iceboy 2nd Dec 17, 1:07 PM
    • 12Posts
    • 6Thanks
    iceboy
    Pension Lump Sum
    • #1
    • 2nd Dec 17, 1:07 PM
    Pension Lump Sum 2nd Dec 17 at 1:07 PM
    On December the 1st I was paid a lump sum pension of £8875 that's all the pot..both me and my wife are pensioners and the government state you should be able to live on £240 a week.Their website states if the lump sum is under £11000 hardly any tax would be paid if any at all of lump sum was paid..now this is where it gets sticky..because they say savings count towards the tax paid..I and my wife are state pension and nothing more..we had £1900 in the bank,but they count your pension as savings?. I had £13600 deducted from the £8875 is this right do you think?.
Page 1
    • Silvertabby
    • By Silvertabby 2nd Dec 17, 1:20 PM
    • 1,917 Posts
    • 2,409 Thanks
    Silvertabby
    • #2
    • 2nd Dec 17, 1:20 PM
    • #2
    • 2nd Dec 17, 1:20 PM
    I had £13600 deducted from the £8875 is this right do you think?.
    I assume you mean £1,360 tax!

    That does sound about right - for now - as your pension provider is unlikely to have had a pension coding to work with.

    The first 25% of your £8875 was paid tax free, and you have paid 20% basic rate tax on the rest. Nothing to do with any savings you may already have had in the bank.

    If you weren't liable for all or any of this tax, then HMRC will refund you at the year end. Or you can claim it now - the covering letter from your pension provider should give you the contact details and any reference to quote.
    • iceboy
    • By iceboy 2nd Dec 17, 1:27 PM
    • 12 Posts
    • 6 Thanks
    iceboy
    • #3
    • 2nd Dec 17, 1:27 PM
    • #3
    • 2nd Dec 17, 1:27 PM
    Thank you so much for replying..and the info much appreciated.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

5,726Posts Today

7,218Users online

Martin's Twitter
  • I realised I forgot in my links earlier. 1. Help to Buy ISAs, how they work and best buys...? https://t.co/BSCNPeqiVF

  • RT @whatdawndid: Thanks to uncle @MartinSLewis I just received £200 back, just like that from the student loan company! Turns out that the?

  • RT @LaraLewington: Shocked and saddened by Cheggers news. Working with him on It?s A Knockout was my 1st job in telly when I was just 19. H?

  • Follow Martin