P45 Issued with a pension lump sum

Birkonian

Hello

I recently got a lump sum from a retirement investment account. They sent me a P45 with the payment.

I am currently working. do I need to hand this P45 in to my employer?

bartnwood

Hello Birkonian,

Yes you need to hand this to your Employer.

chrisbur

At what rate was tax deducted from this payment and are you paying at 20% or would this take you into 40%?

I have no idea what the rules are for a P45 issued like this and as far as I know this exact circumstance is not covered by any guidance for employers. The nearest circunstance to it is a P45 issued by a second employer which should be sent to the tax office. I would be inclined to check with the tax office first especially if adding the P45 details to your wages would cause a sudden tax jump. If you wish to give details of the P45 and last wage it can be checked to see what will happen to your tax if they are combined.

xylophone

https://forums.moneysavingexpert.com/discussion/4290227

See post 23.