Panic, Got a problem, please help Drawdown and Child tax credits

sheramber

funny enough of £9,650 which is weird as the actual gross withdrawal was made by me and was £9,950, any ideas what the £300 difference is?


£300 of pension income is ignored. When you advice TC of the amount you deduct £300 from the total.

Whether you drawdown in monthly instalments or in a lump sum Tax Credits use the annual figure.

You provide an estimated income for the year and confirm the actual amount at renewal. If you under estimate the amount you will have an underpayment when the year is finalised.

happyhero

Ok thanks everybody, I think I have sorted out this problem. After reading all your replies and a bit of Googling I then felt armed enough to attempt contacting HMRC and discuss it all and as mentioned above I can offset all the contributions I made which means I actually will end up better off in the long run although it can take up to 10 weeks they said as they process all the information..

I paid enough in, in 2016/17 to mine and my wife's account to not only rectify the problem of drawing drawdown but it also to knock some off off my wife's wages, thereby increasing our future payments once they are sorted out.

Only annoying thing after all that is I was told I must wait for my renewal pack before I can enter the SIPP contributions which means low payments for a little while, but I can happily suffer this considering where it was I thought I was this morning, owing £3000 to HMRC.

Now I know I can continue to recycle my SIPP and add some more as long as I keep tabs on the effect on the CTC. Using the online CTC calculator makes this straight forward. Thank you everybody for your help and inputs.