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UFPLS Tax Deducted - explanation please
sparky0138
Posts: 595 Forumite
in Cutting tax
My mum's taken a one-off (for this tax year) UFPLS and I'm trying to get my head around the tax they've taken off her. She gets £9072 state pension so I understand the 349L tax code but I can't figure out why she's had £248.40 tax deducted. I've tried Googling it but I still can't find the answer. Can someone please explain in layman's terms how it's been worked out? Thanks.
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Comments
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So 23 August is in tax month 5.
5/12ths of her tax code allowances = £1,458
£2,700 less £1,458 leaves £1,242 to be taxed by the pension company.
£1,242 x 20% = £248.401 -
Perfect. Thank you!0
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Is this with HL ? Doing the £2880 in £3600 out each year ?If so she should have waited until just before 5 November to pay in and taken the cash in January having no tax deducted
Does she know what to do now to get that tax back ?1 -
Thanks. Yes, she's already completed form P55. 👍0
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