pension tax advice please

alanjones60

Im 56,took my pension in march, ,one a final salary pension from 1980,till 2008, when it closed, and another from 2008 till 2015, when i took early retirement, i had a lump sum of 42,500, which was taxed. every month since march i have been taxed on the one pension, the smaller one, £52, no tax, tax code, 1100L MTH 1. 2nd one taxed, £499, taxed, £99.tax code, BR MTH 1. My question is, should i be paying tax on this?

xylophone

The amount of tax you pay depends on your total taxable income.

You say that you are now receiving income from two pensions.

Was income received in the tax year ending 5 April 2016?

You mention taking a lump sum which was taxed. Was this received in the tax year ending 5 April 2016?

This lump sum was taken from the DC pension to which you contributed from 2008-2015?

The lump sum was in excess of the tax free PCLS? By how much?

You were also receiving a salary in the tax year ending 2015-16?

Were you receiving taxable income other than salary in the tax year ending 2015-16?

Are you currently receiving a salary, savings income, and or any other non savings income?

You can contact HMRC to discuss your position and get your tax codes/ any refund due/ additional tax to pay sorted out.

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/income-tax-enquiries-for-individuals-pensioners-and-employees

alanjones60

Thank you for your detailed reply ,i started getting all payments in march 2016,i have no other job, only income is the above. Im sorry, i dont know what a pcls is

xylophone

Im sorry, i dont know what a pcls is

Pension Commencement Lump Sum. See

http://www.pensionsadvisoryservice.org.uk/about-pensions/saving-into-a-pension/pensions-and-tax/tax-and-the-cash-lump-sum

You should contact HMRC.