Help with Emergency Tax on First Pension Withdrawals - What Is Best Way To Do It?

Dizee123

This next financial year (after 6 Apr) I need to take the tax allowance amount of £12,570 from my Standard Life Active Money Personal Pension. It is set up so I can do this on-line and I don't need to worry about triggering the MPAA as it is unlikely I will be adding anything to personal pensions.
Last year I took the tax free allowance to cover the first year of my wait until my DB pension starts in July 23 when I am 60 (this is the normal retirement age).

Question 1.  Is it better to take the entire sum of £12,570 and pay the emergency tax of around £4K and reclaim it or do a smaller withdrawal first to obtain the correct tax code from the tax people? 
Question 2.  How long would this code take to come through and does it come to me or the pension provider?
Question 3.  If it is better to reclaim the whole tax amount, do I use on-line form P55 (as I will not be taking the whole pot)? 
Question 4.  How long will this take?

I would also like to use up the entirety of a small AVC pot with Legal and General of about £6K which would have a tax free amount of around £1500.
I understand that I will pay tax on the remainder at 20%.
Question 5. Am I correct in thinking that the emergency tax on this will be almost correct given the small amount and I can just leave it to correct itself next tax year?

It is also possible that I will seek a part time job over the winter months.
Question 6.  As I will have used up my tax allowance, do I just tell my employer that they should use the BR tax code for all earnings? 

Apologies for all the questions, I hadn't realised it was quite so complicated.
We will be seeking the advice of an IFA when my partner reaches the age of 55 next year, but my pension situation is relatively straightforward (or I thought it was ) given that I am just bridging a 2 year gap.
Any assistance would be most welcome.

 

Dazed_and_C0nfused

1.  Whichever you think is better for your circumstances.  Taking a smaller payment first (£1,048 or less of taxable income means no tax on the emergency tax code of 1257L) means less tax deducted at source which needs repaying.

2.  If HMRC are able to issue a different tax code (or the emergency tax code on a cumulative basis) then it should be within a few days of the pension company reporting the first payment to HMRC.  A new code will definitely go the pension payer and a copy usually goes to you but you can check your Personal Tax Account if nothing is sent to you.

3.  You don't get a choice, you either make a repayment claim or you don't.  You aren't claiming the "whole tax amount", HMRC will repay Amy tax overpaid at that point in time.  If you don't claim they will automatically repay any tax overpaid in Summer 2023.

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

4.  If you make a claim any refund due is usually paid within a few weeks.  But other posters have mentioned delays.

5.  No, the emergency tax code is 1257L so depending on the amount you are likely to owe HMRC tax or they would owe you.  Taking a very small amount and then getting a BR (basic rate) tax code would be more accurate but may not be what you want to do.

6.  Sort of.  You complete a new starter declaration ticking statement C.  They should then use code BR.

molerat

1. To save you having to reclaim which currently seems to be taking several months it is likely best to take a smaller amount below £1048 taxable.

2. Usually within days and it will be sent to the provider, you may not be informed but your on line tax account will show it and you can contact HMRC to correct if necessary.

3.

4. Answered in 1.

5.  Small pots are taxed at BR so should be correct

6.  On the starter form tick box "C", "you have another job" and they will apply code BR

Dizee123

Thank you both, that is really helpful.  
I will make a small withdrawal first if it is taking a while to get tax back.