Pension Income Tax

CathA

I am a non tax payer, as in I work part time but not enough to pay tax or NI. I fill in a self assessment tax return each year as I have other income that I have to declare.

Next January I will be taking some money from a pension, 25% tax free lump sum and a certain amount in income. I know that the pension provider will have to take tax from the income part but I will get that back once I've done my SA. I'm planning to only take enough income to keep me under my tax allowance.

However, should I take the entire amount of income I'm planning to take (about £6500-7000) in one amount or in 3 equal amounts in January, February and March?

Thanks all.

maximumgardener

probably phase it over 3 months
or
delay till new tax year and take income Monthly

if you take it as income in 1 hit , HMRC assume thats income each Month.
you can advise them of course.......your Pension provider should know whats best here

CathA

maximumgardener wrote: »

probably phase it over 3 months
or
delay till new tax year and take income Monthly

if you take it as income in 1 hit , HMRC assume thats income each Month.
you can advise them of course.......your Pension provider should know whats best here

Yes I thought that would be the case. I did vote counting last year, one-off payment, (as vote counting doesn't happen every week!) and HMRC assumed I was paid that amount weekly for the rest of the tax year. My tax code was adjusted as according to them I earned over £5000 from the vote counting employer-i.e. the Council. Blimey, if they DID pay that much I'd be lobbying for elections every second Thursday!!

Thanks very much.