Tax Rebate on a Pension Payment

Hal17

My wife is having a pension payment shortly where they will deduct 20% for tax purposes.

She will need to claim most of this back due to her personal allowances - does she have to wait until after this tax year or can she write to her tax office as soon as she has received her pension payment. Appreciate your help.

kidmugsy

Hal17 wrote: »

My wife is having a pension payment shortly where they will deduct 20% for tax purposes.

She will need to claim most of this back due to her personal allowances - does she have to wait until after this tax year or can she write to her tax office as soon as she has received her pension payment. Appreciate your help.

My wife did it just by phoning.

xylophone

An appropriate tax code should be issued to the pension payer- your wife should ring HMRC.

dunstonh

Within a few weeks, HMRC will tell the pension provider what tax code to use.

mgdavid

if she phones HMRC now they can issue a correct code to the pension payer within days.

jamesd

Ask HMRC by phone to send the pension firm a tax code before they make the payment. Alternatively, if she doesn't strictly need it as a lump sum, get it over the rest of the tax year in regular monthly payments to give time for the tax code to catch up and cause the tax on the first payment to be returned on the later ones automatically. There's very little time to get this done in the current tax year, though, so a call to HMRC in the new tax year asking for a refund maybe what ends up happening if calling them first doesn't get the tax code to the pension firm in time.