Tax on drawing pension

Dazed_and_C0nfused

AlanRoberts29 said:

Dazed_and_C0nfused said:

If you take more than £1048 then some tax will be deducted from the pension.

Depending on the exact scenario this might be more or less than is a really due so there will often be some settling up to do once the final position can be calculated after the end of the tax year.

Large first withdrawals tend to result in more tax being deducted than is really due so a refund is made by HMRC. 

So Standard Life will already deduct tax before transferring over to my bank account and then any more the tax then I need to fill in the forms to get a refund.

You only need to fill in a form if you meet the criteria to complete a Self Assessment return.

Otherwise HMRC will automatically refund any overpaid tax.

You can make a claim if you wish but it isn't necessary.  Unless you desperately need  any overpaid tax to be refunded quickly.

Organgrinder

Are you making any pension contributions on your £30k salary. If you are your taxable earnings will decrease as will the portion you pay 40% tax on.

AlanRoberts29

Organgrinder said:

Are you making any pension contributions on your £30k salary. If you are your taxable earnings will decrease as will the portion you pay 40% tax on.

Yes I am, plus I have a deferred final salary pension that I have been told not to touch and just to leave until retirement.