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Tax owed?

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venisonvenison Forumite
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Ok my taxable (unearned income)this tax year will be £6500 and no earned income, my tax allowance is 12,500 I have done the following (all in current tax year)
!)cashed one pension in receiving £3500 tax free
2)cashed in second pension taxable amount under 5,000 tax deducted at 20%
3)cashed in 3rd pension £27,600 after tax deducted @ 40% 
any idea how much im owed by HMRC have sent the claim in, my reckoning is half the tax paid on pension #3 which should have been taxed @ 20%
Am I right?
many thanks for any help
MSE bring back discussion Time, its removal is an outrage at best and an attempt at censoring at worst !

Replies

  • pphillipspphillips Forumite
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    Yes, you can earn up to £50,000 this tax year before paying tax on any of your income at 40%.
  • venisonvenison Forumite
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    pphillips said:
    Yes, you can earn up to £50,000 this tax year before paying tax on any of your income at 40%.
    yes i was aware of that, what i can't work out is how much rebate to be expecting. but thanks 
    MSE bring back discussion Time, its removal is an outrage at best and an attempt at censoring at worst !
  • pphillipspphillips Forumite
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    venison said:
    pphillips said:
    Yes, you can earn up to £50,000 this tax year before paying tax on any of your income at 40%.
    yes i was aware of that, what i can't work out is how much rebate to be expecting. but thanks 
    Here's how I work it out:
    £1000 remaining personal allowance was paid at 40% = £400
    £26,600 already payed @ 40%,  so divide that in 2 = £5320
    So I make that a rebate of £5720
  • Dazed_and_C0nfusedDazed_and_C0nfused Forumite
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    As the op hasn't told us what their actual income is (and what type of income it can consists of) it is impossible to calculate any refund due.

    For example the "unearned" income might be better being taxed rather than using some of the Personal Allowance (it could possibly be taxable at one of the three 0% rates).

    And it is highly unlikely that the the third pension just had 40% tax deducted.  Far more likely to be a mix of no tax, 20%, 40% and 45%.
  • xylophonexylophone Forumite
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    And it is highly unlikely that the the third pension just had 40% tax deducted.  Far more likely to be a mix of no tax, 20%, 40% and 45%.

    https://adviser.royallondon.com/technical-central/pensions/benefit-options/emergency-tax-and-lump-sum-withdrawals/

  • venisonvenison Forumite
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    As the op hasn't told us what their actual income is (and what type of income it can consists of) it is impossible to calculate any refund due.

    For example the "unearned" income might be better being taxed rather than using some of the Personal Allowance (it could possibly be taxable at one of the three 0% rates).

    And it is highly unlikely that the the third pension just had 40% tax deducted.  Far more likely to be a mix of no tax, 20%, 40% and 45%.
    sorry I should have made that clear, "unearned income " is £113 a week con.based ESA (taxable) and £68 a month from pension 1), so my income ignoring the cashed in pensions will be approx £6,800 for 2020/21
    MSE bring back discussion Time, its removal is an outrage at best and an attempt at censoring at worst !
  • Dazed_and_C0nfusedDazed_and_C0nfused Forumite
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    Ok, that helps but we still don't know how much each pension was.

    1). Do you mean tax free as in TFLS or tax free as in taxable income that had no tax deducted?

    2).  "Under £5,000" is a bit vague when it comes to working out your tax position

    3).  What was the taxable income?
  • venisonvenison Forumite
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    1)paid £3500 tax free plus an annuity of £68 a month    2) total pot £5600 less 25% tax free; balance taxed at 20% =£4700   3)my only income for 2020/21 will be £113 week ESA plus £68 a month annuity 
    MSE bring back discussion Time, its removal is an outrage at best and an attempt at censoring at worst !
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