Form P55

Xbigman

I've taken a UFPLS lump sum and I'm trying to claim the tax back using form P55. I intend to take another lump sum later in the year. The criteria for doing this online states:

Claim a tax refund when you've flexibly accessed part of your pension

Use this form to claim an Income Tax refund on a flexibly accessed pension payment if:

• you've flexibly accessed your pension pot, but not emptied it
• you're not taking another flexible payment before the end of the tax year
• the pension body is unable to make a tax refund 

The second point above indicates this is the wrong form. Should I be using another form or have I missed something??
Many thanks.

Darren

kuratowski

Correct, Form P55 does not apply to you.  If you are taking a further payment then the amount of tax you pay will be automatically adjusted through PAYE.  Generally, the later in the year you take the lump sum(s), the less of an overpayment of tax there will be.

Xbigman

OK. Things don't work quite as I thought. 

I've used the personal tax account to update HMRC on two tax allowance adjustments (Medical benefit BIK and Uniform cleaning allowance) that no longer apply and let them know I no longer work. I'll just sit back and wait for the tax to sort itself out.
Cheers


Darren

molerat

HMRC should now allocate a code to the pension.  As long as it is not M1 then the next withdrawal should sort the tax.  It is usually best to take a first withdrawal of less than £1396 so no tax is deducted but it triggers HMRC to allocate a code which can then be corrected as necessary and future payments are taxed correctly, the smaller the first withdrawal the less tax needs correcting.

TVAS

If you retire and have no other income or just receive your state pension, use form P50.

If you take all your money out of your pension pot and you have no other income, use form P50Z.

If you take all your money out of your pension pot and have other PAYE income, use form P53Z. Note that if you have taken a pension lump sum under the ‘small pots’ rules, form P53 is required, which is different to the P53Z.

If you take only part of your money out of a pension pot, and you will not take another cash payment from the pension pot before the end of the tax year, you can claim a tax refund (if appropriate) using form P55.