Pension information

Thecar

Can someone give me information on a tax query 
I earn £16000 per year work
I get £7500 pension per year company these are gross payments 
I'm looking to take my private pension it has £26000 pot
If I take the the money  will it take me over the basic tax bracket or shall I wait till the next tax year any help much appreciated 

garmeg

Your earnings plus pension are £23,500 which is taxable (personal allowance covers some of this)
After taking PCLS you will have £19,500 taxable from your pension.
These add up to £42,500 which is less than the England and Wales HRT threshold of £50,000. The Scottish threshold is less that this but is still greater than £42,500.

So no higher rate tax is due.

However, you may have some higher rate tax deducted initially from the £19,500 which you can reclaim from HMRC. There is a form to do this that someone more knowledgeable can advise its name.

Obviously you invoke the MPAA of £4,000 if you do this, which presumably is not an issue for you?

Thecar

Many tks great advice 

Albermarle

The obvious question is why do you want to take the pension pot ?
Normally it is best left where it is unless you are desperate for the cash for some urgent reason.

xylophone

The obvious question is why do you want to take the pension pot ?

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