TFLS - Self Assessment

tony4147

I’m thInking of taking some of my TFLS whilst I’m still working, will this trigger me having to do a self assessment? Currently I don’t do one

molerat

Commencing a pension will not mean you need to SA.  Why do you think it would? As far as the taxman is concerned a pension is just another PAYE income stream and the TFLS is of no interest to them.

Dazed_and_C0nfused

tony4147 said:

I’m thInking of taking some of my TFLS whilst I’m still working, will this trigger me having to do a self assessment? Currently I don’t do one

Why would some tax free income trigger the need for Self Assessment 🤔

tony4147

Dazed_and_C0nfused said:

tony4147 said:

I’m thInking of taking some of my TFLS whilst I’m still working, will this trigger me having to do a self assessment? Currently I don’t do one

Why would some tax free income trigger the need for Self Assessment 🤔

Does the Pension Company inform HMRC when I withdraw part of my TFLS? I’ve read a few things in the papers where people are being put on an emergency tax code when they make withdrawals, I can understand that with the crystallised part of the pension, my concern is the TFLS whilst I’m still working

Dazed_and_C0nfused

tony4147 said:

Dazed_and_C0nfused said:

tony4147 said:

I’m thInking of taking some of my TFLS whilst I’m still working, will this trigger me having to do a self assessment? Currently I don’t do one

Why would some tax free income trigger the need for Self Assessment 🤔

Does the Pension Company inform HMRC when I withdraw part of my TFLS? I’ve read a few things in the papers where people are being put on an emergency tax code when they make withdrawals, I can understand that with the crystallised part of the pension, my concern is the TFLS whilst I’m still working

They probably do yes.

But I have never heard of pension companies telling HMRC about TFLS causing any issues with it being mixed up as taxable income.

Albermarle

tony4147 said:

Dazed_and_C0nfused said:

tony4147 said:

I’m thInking of taking some of my TFLS whilst I’m still working, will this trigger me having to do a self assessment? Currently I don’t do one

Why would some tax free income trigger the need for Self Assessment 🤔

Does the Pension Company inform HMRC when I withdraw part of my TFLS? I’ve read a few things in the papers where people are being put on an emergency tax code when they make withdrawals, I can understand that with the crystallised part of the pension, my concern is the TFLS whilst I’m still working

A TFLS does not have a tax code, as it is not taxable income.

xylophone

What exactly do you mean when you say "part" of your TFLS?

tony4147

xylophone said:

What exactly do you mean when you say "part" of your TFLS?

I haven’t touched my pension since I started it, I have approx £120k that can be withdrawn as a TFLS, I’m thinking of withdrawing maybe £10-20k

Marcon

molerat said:

Commencing a pension will not mean you need to SA.  Why do you think it would? As far as the taxman is concerned a pension is just another PAYE income stream and the TFLS is of no interest to them.

Dazed_and_C0nfused said:

tony4147 said:

I’m thInking of taking some of my TFLS whilst I’m still working, will this trigger me having to do a self assessment? Currently I don’t do one

Why would some tax free income trigger the need for Self Assessment 🤔

OP is asking because they don't know - and wisely are checking things before going any further. It's all very well for those who are familiar with the arcane world of pensions to be dismissive of what they clearly see as a 'silly question' but in my book the only silly question is the one you DON'T ask.

xylophone said:

What exactly do you mean when you say "part" of your TFLS?

Er - part of their TFLS, or 'not the whole of my TLFS', or 'part of my TFLS'....

xylophone

I haven’t touched my pension since I started it, I have approx £120k that can be withdrawn as a TFLS, I’m thinking of withdrawing maybe £10-20k

You have a  Defined Contribution Pension currently valued at £480,000? It has no "safeguarded benefits", for example a Guaranteed Annuity Rate?

You indicate that you have not yet accessed this pension.

It is not the workplace pension to which you are currently contributing?

Before you access the pension, it would be a good idea to have an interview with Pension Wise.

https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise/book-a-free-pension-wise-appointment

Are you intending to take  a UFPLS?

See https://www.moneyhelper.org.uk/en/pensions-and-retirement/taking-your-pension/your-options-for-using-your-defined-contribution-pension-pot#Accessing-your-defined-contribution-pension-pot---your-options

Are you aware of Money Purchase Annual Allowance?

https://www.mandg.com/wealth/adviser-services/tech-matters/pensions/annual-allowance/money-purchase-annual-allowance

tony4147

xylophone said:

I haven’t touched my pension since I started it, I have approx £120k that can be withdrawn as a TFLS, I’m thinking of withdrawing maybe £10-20k

You have a  Defined Contribution Pension currently valued at £480,000? It has no "safeguarded benefits", for example a Guaranteed Annuity Rate?

You indicate that you have not yet accessed this pension.

It is not the workplace pension to which you are currently contributing?

Before you access the pension, it would be a good idea to have an interview with Pension Wise.

https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise/book-a-free-pension-wise-appointment

Are you intending to take  a UFPLS?

See https://www.moneyhelper.org.uk/en/pensions-and-retirement/taking-your-pension/your-options-for-using-your-defined-contribution-pension-pot#Accessing-your-defined-contribution-pension-pot---your-options

Are you aware of Money Purchase Annual Allowance?

https://www.mandg.com/wealth/adviser-services/tech-matters/pensions/annual-allowance/money-purchase-annual-allowance

Plenty of information there that I don’t require!
I'm asking a simple question that no one seems to be able to answer.
Yes my pot is £480k, there is no GAR, yes I know about MPAA. I’m 61 and will continue to work another 4 years and contribute £40k / yr into my SIPP.
So currently as my pension stands £120k can be taken as a TFLS, I would like to withdraw a small part of that, but what I don’t know is the mechanics of doing it, will my SIPP provider inform HMRC? Will I be put onto an emergency tax code? Will I have to complete a self assessment or some other form to reclaim tax if HMRC were to tax me?