Tax, What a Palaver!

EdGasketTheSecond

The problem with taking monthly payments is the charges levied by your pension platform for each payment. It might be cheaper to take just one payment and take that in tax month 12 to avoid paying and reclaiming too much tax.

lynx10

During the 2018-19 tax year, I received a single 'flexibly-accessed pension payment', calculated to take advantage of the unused tax allowance difference between the state pension and the personal tax allowance.

Approx. £250 was deducted in tax by the pension provider, but I have received differing advice about recovering this deduction:

- Use HMRC Form P53 'A lump sum or cash (such as ‘drawdown’)'
- Use HMRC Form P53Z 'Flexibly accessed pension lump sum: repayment claim'
- Use HMRC Form P55 'Flexibly accessed pension payment: repayment claim'

Except that these all appear to concern 2019-20 and do not collect data for 2018-19.

Is there anyone in similar circumstances - and having successfully claimed in 2019-20 for a 2018-19 deduction - who could tell me which form they used. TIA.

Dazed_and_confused

As you are posting this several weeks into the 2019:20 tax year I presume you aren't desperate for the tax refund.

In which case you don't need to do anything. HMRC will automatically refund any tax overpaid when they review your records this summer.

https://www.gov.uk/tax-overpayments-and-underpayments

NB. This doesn't apply if you are completing a Self Assessment return for 2018:19.

lynx10

Dazed_and_confused wrote: »

... In which case you don't need to do anything. HMRC will automatically refund any tax overpaid when they review your records this summer.

https://www.gov.uk/tax-overpayments-and-underpayments

Many thanks, that's useful to know.