Taking UFPLS from SIPP

green_man

Audaxer said:

Thanks. Will she be able to phone HMRC to claim the tax back just after it is paid, or will she have to wait for HMRC to automatically refund it several months later?

She will need to fill in a P55  form  to reclaim the tax.

its pretty straight forward if you have had no other income.  Once P55 is submitted you will get a refund approx a month later.

Audaxer

Xbigman said:

Go into your wife's personal tax account (under PAYE I think) and set where you want you tax code applied to. They should then send the SIPP provider a tax code so a withdrawal in the last month of the tax year should take no tax. But you've left it tight to do that. 
I adjust my tax code placings like this each April (but I've usually forgotten what I did last time and have to work it out again) as my DB pension increases.

Incidentally, my second UFPLS withdrawal was a nightmare of lost paperwork and soggy envelopes that took six weeks. If I wanted to make a withdrawal in the last month of the tax year I'd have everything filled out, signed and in the post on the 5th March just in case.



Darren

Thanks, we have now gone into to her account (PAYE section) and added the name of the SIPP provider. It says that the name will not appear until the first payment is made. Hopefully it will help, but as we have to make the UFPLS in the next few days to get it through in time, I'm guessing the SIPP provider will not get the tax code in time. It's worth a try anyway, so thank you.

Qyburn

I've just been through the process.  UFPLS received late January, submitted the claim online at then of the month and tax refund received about three weeks later. The only fiddly bit was coming up with a reasonable estimate for savings interest.

https://www.gov.uk/guidance/claim-back-tax-on-a-flexibly-accessed-pension-overpayment-p55

Audaxer

Qyburn said:

I've just been through the process.  UFPLS received late January, submitted the claim online at then of the month and tax refund received about three weeks later. The only fiddly bit was coming up with a reasonable estimate for savings interest.

https://www.gov.uk/guidance/claim-back-tax-on-a-flexibly-accessed-pension-overpayment-p55

Thanks, I had a look at that form yesterday and it did seem to request a lot of details regarding savings interest. She has several accounts and I wasn't sure whether I'd need to get details of all the interest paid so far etc., but I guess we will have to do that if we want a quick refund of the tax.

dealyboy

@Audaxer said:

Qyburn said:

I've just been through the process.  UFPLS received late January, submitted the claim online at then of the month and tax refund received about three weeks later. The only fiddly bit was coming up with a reasonable estimate for savings interest.

https://www.gov.uk/guidance/claim-back-tax-on-a-flexibly-accessed-pension-overpayment-p55

Thanks, I had a look at that form yesterday and it did seem to request a lot of details regarding savings interest. She has several accounts and I wasn't sure whether I'd need to get details of all the interest paid so far etc., but I guess we will have to do that if we want a quick refund of the tax.

I have spoken to HMRC in the past regarding the P55 and was told that they are not too pedantic with the form. Last year I summarised savings interest as being about £500, if they wanted more detail they could have asked for it, but they didn't.

I think as long as the amount is not going to be relevant for income tax, in my case as my income is under £12,570 it would have to be over £6,000, then I wouldn't worry. https://www.gov.uk/apply-tax-free-interest-on-savings

Albermarle

Xbigman said:

Go into your wife's personal tax account (under PAYE I think) and set where you want you tax code applied to. They should then send the SIPP provider a tax code so a withdrawal in the last month of the tax year should take no tax. But you've left it tight to do that. 
I adjust my tax code placings like this each April (but I've usually forgotten what I did last time and have to work it out again) as my DB pension increases.

Incidentally, my second UFPLS withdrawal was a nightmare of lost paperwork and soggy envelopes that took six weeks. If I wanted to make a withdrawal in the last month of the tax year I'd have everything filled out, signed and in the post on the 5th March just in case.



Darren

Regarding your comment in bold. AIUI you can not do that until the first payment is made, and the SIPP provider is then registered on your personal tax account.

Audaxer

Albermarle said:

Xbigman said:

Go into your wife's personal tax account (under PAYE I think) and set where you want you tax code applied to. They should then send the SIPP provider a tax code so a withdrawal in the last month of the tax year should take no tax. But you've left it tight to do that. 
I adjust my tax code placings like this each April (but I've usually forgotten what I did last time and have to work it out again) as my DB pension increases.

Incidentally, my second UFPLS withdrawal was a nightmare of lost paperwork and soggy envelopes that took six weeks. If I wanted to make a withdrawal in the last month of the tax year I'd have everything filled out, signed and in the post on the 5th March just in case.



Darren

Regarding your comment in bold. AIUI you can not do that until the first payment is made, and the SIPP provider is then registered on your personal tax account.

Thanks. She was able to go into her account this morning under PAYE and input the name of the pension provider, but it said it would not show on the account until the first payment was made. I think that the UFPLS will still result in emergency tax code going on, and we will have to claim back the tax.

Dazed_and_C0nfused

Audaxer said:

Albermarle said:

Xbigman said:

Go into your wife's personal tax account (under PAYE I think) and set where you want you tax code applied to. They should then send the SIPP provider a tax code so a withdrawal in the last month of the tax year should take no tax. But you've left it tight to do that. 
I adjust my tax code placings like this each April (but I've usually forgotten what I did last time and have to work it out again) as my DB pension increases.

Incidentally, my second UFPLS withdrawal was a nightmare of lost paperwork and soggy envelopes that took six weeks. If I wanted to make a withdrawal in the last month of the tax year I'd have everything filled out, signed and in the post on the 5th March just in case.



Darren

Regarding your comment in bold. AIUI you can not do that until the first payment is made, and the SIPP provider is then registered on your personal tax account.

Thanks. She was able to go into her account this morning under PAYE and input the name of the pension provider, but it said it would not show on the account until the first payment was made. I think that the UFPLS will still result in emergency tax code going on, and we will have to claim back the tax.

You don't have to claim if back.

You can do but if you don't it will be automatically refunded later this summer.

PaulJacksonUK

Oh dear, I'm in the same boat. I am just about to make a UFPLS withdrawal of around £30K having only earned about £2.5K earlier this year (I retired in April). I never imagined they'd be so crazy as to tax it as if I've earned at this rate all year. I presume if I do a tax return on April 6th I will then get refunded.

Dazed_and_C0nfused

PaulJacksonUK said:

Oh dear, I'm in the same boat. I am just about to make a UFPLS withdrawal of around £30K having only earned about £2.5K earlier this year (I retired in April). I never imagined they'd be so crazy as to tax it as if I've earned at this rate all year. I presume if I do a tax return on April 6th I will then get refunded.

Why do you need to complete a tax return 🤔