HL 2880 to 3600

otb666

@Dazed_and_C0nfused  Wow did not know that so what tax codes shall i update them to bearing in mind i am only going to withdraw 3600 in total this year for HL and wanna leave the rest for my main pension I also do the marriage transfer thing to hubby PLEASE

otb666

i have changed HL estimated income on Personal Tax Account from 1024 to 2880 I dont know if I have done this right to not include The Uplift to 3600 as thats tax free? i guess my main pension will change from 10070 to 8430

Dazed_and_C0nfused

otb666 said:

i have changed HL estimated income on Personal Tax Account from 1024 to 2880 I dont know if I have done this right to not include The Uplift to 3600 as thats tax free? i guess my main pension will change from 10070 to 8430

I don't know why you think that?

That is the tax relief you receive on your net contribution, if isn't tax free.

When you come to take income out of the pension 25% of any uncrystallised amount can be taxen as tax free income with 75% being taxable.

From a gross contribution of £3,600 that would be £900 TFLS and £2,700 in taxable income.

otb666

So changing the income to 2880 will mean the taxable bit is covered What I am checking is that I only amend the HL income on Personal Tax Account to shown taxable income only and not the taxable and TFLS Combined? Thank you for your patience I am a bit thick xx

Dazed_and_C0nfused

otb666 said:

So changing the income to 2880 will mean the taxable bit is covered What I am checking is that I only amend the HL income on Personal Tax Account to shown taxable income only and not the taxable and TFLS Combined? Thank you for your patience I am a bit thick xx

You should be able to change each individual source of PAYE income.

So HL might be £2,880 (or £2,900) and separately your main pension would be whatever you think will end up being shown on your P60 for that specific pension.

Audaxer

otb666 said:

So changing the income to 2880 will mean the taxable bit is covered What I am checking is that I only amend the HL income on Personal Tax Account to shown taxable income only and not the taxable and TFLS Combined? Thank you for your patience I am a bit thick xx

If you are going to be taking out the full £3,600 from HL, of which £900 is tax free, I would have thought you would amend the HL income figure on your Personal Tax Account to £2,700 as that is the amount of taxable income you would be withdrawing from HL?

Doctor_Who

Audaxer said:

otb666 said:

So changing the income to 2880 will mean the taxable bit is covered What I am checking is that I only amend the HL income on Personal Tax Account to shown taxable income only and not the taxable and TFLS Combined? Thank you for your patience I am a bit thick xx

If you are going to be taking out the full £3,600 from HL, of which £900 is tax free, I would have thought you would amend the HL income figure on your Personal Tax Account to £2,700 as that is the amount of taxable income you would be withdrawing from HL?

This is what I did recently with my II SIPP. I updated my personal tax account with the expected taxable element from my UFPLS withdrawals and ignored the 25% tax free amount. HMRC then sent an updated tax code to II within a couple of days.

otb666

i have added the 2ND 2880 to my HL SIP i will need to amend my tax code to 5400 for HL before 21/11/23(when gets topped up) from 2880 to 5400.

 I did get taxed £275 from my last withdrawal 2153(received 1878) I hope i will get this back as 23/24 tax codes on pension and sipp will be 5910 and 5400 respectively=11310 (marriage thingy) My DB Pension is £5,734.08.

  I am having to keep track on what I am doing on here Next tax year 24/25 I will amend HL down to 2700 as next year only doing one withdrawal.  My pension(including top up from sipp) till i retire is 6.5k which i am just about managing on as got 10 years before my full state pension.  

My pension wrote to me talking about increasing by £250pa but losing RPI to CPI on first part of pension before 1998. But decided against that as this meant liaising with their IFA. Which I did not want to do.

Any comments most welcomed Thank you for reading. Best wishes as always and hope everyone managing to keep wolf from door in these strange times.

molerat

To get the full benefit of the tax code you will likely have to wait to take the final dip until March.  Do you understand how the monthly 1/12th of tax allowance works ?  What codes are set against the 2 income streams at the moment ?

otb666

@molerat I do not understand how 1/12th of tax allowance works.  The codes are set against the 2 income streams at the moment are DB Pension 843N  HL 288T M1.  I shall wait until Mar 1st before changing tax codes then? Thank you