How to calculate and pay tax on pension withdrawal

Bandy2023

molerat said:

If you are already a 40% tax payer then tax of £4000 was due on that payment.  You had £2952 deducted so owe another £1048.  There is not much you can do about it now.  HMRC will reconcile  23-24 later in the year and adjust your tax code to recoup any underpaid tax. Look on it a an interest free loan.

No option to just stump up the grand ( which is the amount I expected ) ?

molerat

They only usually issue a simple assessment, otherwise known as a bill, if there is no other way of collecting it or it is over £3K.  Otherwise it is usually carried forward to the following tax year. https://www.gov.uk/tax-overpayments-and-underpayments/if-you-owe-tax