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Withdraw pension to pay HMRC
TheLearner2008
Posts: 145 Forumite
Perhaps you are not aware of the thousands of contractors that are being targeted by MSC legislation.
Anyway turns out I might have a huge tax bill.
Is it possible for me to withdraw my private pension to pay debt?
I don’t live in the uk anymore anyway.
I don’t live in the uk anymore anyway.
Debt 1 June 2017: £35,000.00 ~ Debt now: £10,000
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Comments
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It will depend on what type of pension it is, what the normal & early retirement dates are and what your age is.
You might be able to transfer it out of the UK via a QROPS and then access the money in the new country it lands in according to their rules. But do take great care in this as if you get it wrong the money transferred might be subject to another 40% bill from HMRC.I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe, Old Style Money Saving and Pensions boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
Click on this link for a Statement of Accounts that can be posted on the DebtFree Wannabe board: https://lemonfool.co.uk/financecalculators/soa.php
Check your state pension on: Check your State Pension forecast - GOV.UK
"Never retract, never explain, never apologise; get things done and let them howl.” Nellie McClung
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Wait until you actually get a bill and then take advice.
Using your pension pot would be the last option I would consider1 -
If its a private or workplace pension, you can access it at age 55, not before.
Depending on how much is invested, you can take lump sum payments, or the whole lot as cash.
Unsure if living abroad may be an issue tax wise, in any case, advice should be taken before hand.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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