Pension income codes etc help

Easyjet77

Hello , clarification required please, if anyone can assist. Next tax year my income is as follows: state pension £11500... company  db pension £16000... drawdown dc pension £12500. Total annual income from all sources. 
     Tax code allocated for next tax year  S228M.  I fully understand that the tax won't be taken from state pension, how will it be collected from the 2 other pensions?
         Also, can anyone confirm if the total income stays within the 21% tax rate.
     If required please mive to tax board forum .  Thank you.

PS this current tax year I only have State and DB pension, all tax taken from DB pension and no concerns

eskbanker

Easyjet77 said:

Hello , clarification required please, if anyone can assist. Next tax year my income is as follows: state pension £11500... company  db pension £16000... drawdown dc pension £12500. Total annual income from all sources. 
     Tax code allocated for next tax year  S228M.  I fully understand that the tax won't be taken from state pension, how will it be collected from the 2 other pensions?

You don't have a single tax code, you have one per income stream/employer/pension provider, so the non-state pension providers will deduct tax via PAYE according to whatever code they're given.

Easyjet77 said:

Also, can anyone confirm if the total income stays within the 21% tax rate.

If your total income is £40K then yes, that's the highest marginal rate.

Easyjet77

Thanks for reply and info. I have just checked my latest tax code notice and the S228M  is indeed allocated to my DB pension. What happens when I commence the DC drawdown in next tax year? Is that code split, new code issued?
  Yes, that is total income as stated in my opening post.
   Thanks again

Dazed_and_C0nfused

It looks like you should have tax code SD0 for whichever pension doesn't have the S228M code.

Easyjet77

Thank you, I'll follow up on that.

Easyjet77

Received drawdown payment .tax code SD1. Gross £12500 minus £5250 tax. I understand  I may can reclaim any overpayment of tax via form P55 ( or similar) Any thoughts? Thanks

Marcon

Easyjet77 said:

Received drawdown payment .tax code SD1. Gross £12500 minus £5250 tax. I understand  I may can reclaim any overpayment of tax via form P55 ( or similar) Any thoughts? Thanks

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

molerat

Have you previously drawn from that pension ?  If so the code to be used should have already been showing in your tax account, if not drawn previously where has SD1 come from ?

Easyjet77

molerat said:

Have you previously drawn from that pension ?  If so the code to be used should have already been showing in your tax account, if not drawn previously where has SD1 come from ?

Withdrew tfls several years ago. This is only other withdrawal,  Sd1 code is on payment slip from Vanguard. 
 As an aside I requested withdrawal on April 8th, funds sold and cash in bank today. Good enough service and no payment fees etc. Vanguard works for me, despite bad reports by some. Thanks
  Sorry, There wasn't a code for this pension in my online tax account until I made this withdrawal .SD1 

Easyjet77

Marcon said:

Easyjet77 said:

Received drawdown payment .tax code SD1. Gross £12500 minus £5250 tax. I understand  I may can reclaim any overpayment of tax via form P55 ( or similar) Any thoughts? Thanks

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

Thanks, I'll check that now.

Albermarle

Vanguard works for me, despite bad reports by some.

The negative comments on this forum, seem to be mainly centred around problems trying to transfer out of Vanguard to another provider.