pension tax

mandiskem

xylophone wrote: »

How is this pension being taken? PCLS and monthly income?

Trivial commutation?

hes took a trivial lump sum the lot he has taken

xylophone

See http://www.litrg.org.uk/tax-guides/pensioners-and-tax/how-do-i-cash-my-small-pension-trivial-commutation

under

Do I have to pay tax on trivial commutation lump sum payments?

Linton

Dazed_and_confused wrote: »

That is wrong. There is no need whatsoever for BR code to be used, it should be the emergency code on a week1/month1 basis if the guidance on gov.uk is followed (booklet CWG2).

For smaller amounts, like op's partner is likely to get, this will mean no tax is deducted.

......

Correct. My use of BR was wrong.

However the OP has now said its a one-off trivial commutation payment, it seems of £21016. The use of M1 means that the tax will be based on an assumption of this being paid every month for a year. and so will be taxed at the Extra rates. The OP should read:

https://www.gov.uk/claim-tax-refund/you-get-a-pension

and send in the appropriate form to get the excess tax refunded.

Linton

Further...

The Which website states that in the absence of a taxcode a BR code could be used. This would mean that the pension company is actually correct as in the OPs circumstances the use of a BR code would be much more sensible and would give a tax take closer to the correct value than the HMRC emergency code.