HMRC and owed tax rebate

lookstraightahead

Hi all

Following the 40% emergency tax I will be paying this week on cashing in an old/small pension pot, I believe I will need to complete a form so that HMRC will pay me the rebate they will owe me. Can I ask roughly how long this will take from submitting the form to receiving the rebate, and is this usually paid into your bank or is it added to your PAYE? Also, is interest added and does anyone know what they do with your money before it's pays back to you?
many thanks 

xylophone

https://www.gov.uk/claim-tax-refund

Dazed_and_C0nfused

lookstraightahead said:

Hi all

Following the 40% emergency tax I will be paying this week on cashing in an old/small pension pot, I believe I will need to complete a form so that HMRC will pay me the rebate they will owe me. Can I ask roughly how long this will take from submitting the form to receiving the rebate, and is this usually paid into your bank or is it added to your PAYE? Also, is interest added and does anyone know what they do with your money before it's pays back to you?
many thanks 

You don't need to complete a form, the choice is yours.

If you do nothing (and don't need to complete a Self Assessment return) then HMRC will automatically refund any tax overpaid, usually in the summer after the end of the tax year in question.

It is highly unlikely to be paid back via an existing employer, it would come back to you, usually to your bank account or sometimes a cheque.

Interest, known as repayment supplement, is paid by HMRC.  This applies on any tax overpaid which isn't refunded until after 31 January after the end of the tax year in question.

The money helps keep the country running.

Have you considered taking a smaller first payment so HMRC have opportunity to issue a basic rate tax code and then you can take the remainder of are you using the "small pots" rule?

lookstraightahead

Dazed_and_C0nfused said:

lookstraightahead said:

Hi all

Following the 40% emergency tax I will be paying this week on cashing in an old/small pension pot, I believe I will need to complete a form so that HMRC will pay me the rebate they will owe me. Can I ask roughly how long this will take from submitting the form to receiving the rebate, and is this usually paid into your bank or is it added to your PAYE? Also, is interest added and does anyone know what they do with your money before it's pays back to you?
many thanks 

You don't need to complete a form, the choice is yours.

If you do nothing (and don't need to complete a Self Assessment return) then HMRC will automatically refund any tax overpaid, usually in the summer after the end of the tax year in question.

It is highly unlikely to be paid back via an existing employer, it would come back to you, usually to your bank account or sometimes a cheque.

Interest, known as repayment supplement, is paid by HMRC.  This applies on any tax overpaid which isn't refunded until after 31 January after the end of the tax year in question.

The money helps keep the country running.

Have you considered taking a smaller first payment so HMRC have opportunity to issue a basic rate tax code and then you can take the remainder of are you using the "small pots" rule?

Thank you for the info. I have taken it in one go as I would have had to transfer it as the type of pension would not have allowed me to take a part of it. It's not a huge amount so I'm happy to wait.

I hope I'm paid before they have to pay me interest! 

Thanks again