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Pension and tax
mrsdoyle
Posts: 81 Forumite
Hi everyone.I have a pot of £30000,if I were to take the 25% tax free leaving £22500.Because I am receiving Income related Employment and support allowance (Support group) which is a non taxable benefit,would I be able to withdraw ad hoc amounts tax free up to my personal allowance limit (£11850) in the future.Im 62 and this benefit is my only source of income. Many thanks.
0
Comments
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If you receive a pension Income of £11850 you won't receive any Employment and Support Allowance so the fact that it's non-taxable is irrelevant.
Don't forget to notify the DWP if you start taking your pension or a lump-sum as any capital you have over £6000 will reduce your ESA award and pension income above a certain level will reduce it also.
You might want to delay taking your pension due to the effect it would have on your ESA.0
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