Tax on small pension pot withdrawal

rjmachin

Hi,
Dad has been retired / unemployed for a couple of years now (or close to that).
He gets his state pension in April and has received dates / amounts of what that will be.
From his last job, he had a small DC pension pot of around £1k, and last year (after April 2020), his advisor said he should take it as a small pension pot instead, which he did.
He was taxed on it at the time of withdrawal.
I should say he transferred his marriage allowance over to my mum who is still working.
As he had no income last year, apart from maybe 4 months of contributions based job seekers allowance, is he entitled to the tax back on the small pension pot?
If so, will HMRC automatically inform him sometime after April on what he needs to do?

JGB1955

If he is not currently working he can claim the tax back via form R50.
Claim Income Tax back when you've stopped work - GOV.UK (www.gov.uk)

Marcon

rjmachin said:

Hi,
Dad has been retired / unemployed for a couple of years now (or close to that).
He gets his state pension in April and has received dates / amounts of what that will be.
From his last job, he had a small DC pension pot of around £1k, and last year (after April 2020), his advisor said he should take it as a small pension pot instead, which he did.
He was taxed on it at the time of withdrawal.
I should say he transferred his marriage allowance over to my mum who is still working.
As he had no income last year, apart from maybe 4 months of contributions based job seekers allowance, is he entitled to the tax back on the small pension pot?
If so, will HMRC automatically inform him sometime after April on what he needs to do?

Unless he completes a self assessment tax return, which seems unlikely, nothing will happen 'automatically'.  Easy to reclaim on line: https://www.gov.uk/government/publications/income-tax-repayment-claim-when-small-pension-taken-as-a-lump-sum-p53

Croeso69

Marcon said:

rjmachin said:

Hi,
Dad has been retired / unemployed for a couple of years now (or close to that).
He gets his state pension in April and has received dates / amounts of what that will be.
From his last job, he had a small DC pension pot of around £1k, and last year (after April 2020), his advisor said he should take it as a small pension pot instead, which he did.
He was taxed on it at the time of withdrawal.
I should say he transferred his marriage allowance over to my mum who is still working.
As he had no income last year, apart from maybe 4 months of contributions based job seekers allowance, is he entitled to the tax back on the small pension pot?
If so, will HMRC automatically inform him sometime after April on what he needs to do?

Unless he completes a self assessment tax return, which seems unlikely, nothing will happen 'automatically'.  Easy to reclaim on line: https://www.gov.uk/government/publications/income-tax-repayment-claim-when-small-pension-taken-as-a-lump-sum-p53

Doesnt this get sorted automatically if you have a personal tax account?

rjmachin

Is it the P50 or P53 that needs to be done?  (He stopped working prior to the 2020 tax year start)

Does this need to be done before the end of the tax year?

The reason I asked if it was automatic was because I had heard some people (who work) get tax rebates at the end of the year (cheque?) if they had overpaid, so wondered if the same happens in this case.

Dazed_and_C0nfused

Croeso69 said:

Marcon said:

rjmachin said:

Hi,
Dad has been retired / unemployed for a couple of years now (or close to that).
He gets his state pension in April and has received dates / amounts of what that will be.
From his last job, he had a small DC pension pot of around £1k, and last year (after April 2020), his advisor said he should take it as a small pension pot instead, which he did.
He was taxed on it at the time of withdrawal.
I should say he transferred his marriage allowance over to my mum who is still working.
As he had no income last year, apart from maybe 4 months of contributions based job seekers allowance, is he entitled to the tax back on the small pension pot?
If so, will HMRC automatically inform him sometime after April on what he needs to do?

Unless he completes a self assessment tax return, which seems unlikely, nothing will happen 'automatically'.  Easy to reclaim on line: https://www.gov.uk/government/publications/income-tax-repayment-claim-when-small-pension-taken-as-a-lump-sum-p53

Doesnt this get sorted automatically if you have a personal tax account?

Yes, HMRC will review things later this year and refund any tax overpaid.

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

TVAS

You need to at least wait until the end of this tax year. If you do not hear anything by May then he needs to ask for the tax reference and office that the pension provider uses and a phone number to contact HMRC.