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Pension Withdrawal

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  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 17,544 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    Tattie63 said:
    Yes my monthly payment that I received on the 3rd of every month ,today was taxed at 47.6%.I was paid £599 today.
    My withdrawal of £28k that I received on 1st was deducted at roughly 42.4 %.
    Prior to this withdrawal I was paid £1152 tax free every month for the last 2yrs.

    You need to check your personal tax account to see why the tax code has changed on your existing pension.

    It is unlikely to have happened in response to taking the £28k, it will be some other reason.

  • Tattie63
    Tattie63 Posts: 25 Forumite
    Sixth Anniversary 10 Posts
    I have applied for tax refund,yesterday.
    In relation to the tax on my £28k initially.
    But today when I saw my monthly payment,taxed even more.
    Thought I need to speak to someone.
    Thanks for your help.
    Been trying to telephone HMRC all morning.
  • FIREDreamer
    FIREDreamer Posts: 994 Forumite
    500 Posts Second Anniversary Name Dropper Photogenic
    Tattie63 said:
    I have applied for tax refund,yesterday.
    In relation to the tax on my £28k initially.
    But today when I saw my monthly payment,taxed even more.
    Thought I need to speak to someone.
    Thanks for your help.
    Been trying to telephone HMRC all morning.
    They have probably assumed, wrongly, that the £28k withdrawal is a regular monthly one which has messed up your tax code.
  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 17,544 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    Tattie63 said:
    I have applied for tax refund,yesterday.
    In relation to the tax on my £28k initially.
    But today when I saw my monthly payment,taxed even more.
    Thought I need to speak to someone.
    Thanks for your help.
    Been trying to telephone HMRC all morning.
    They have probably assumed, wrongly, that the £28k withdrawal is a regular monthly one which has messed up your tax code.
    Possibly but it seems incredibly quick work for HMRC to have acted on information about the £28k, sent a new tax code for the existing pension and the pension payer to have started to use the new code!
  • FIREDreamer
    FIREDreamer Posts: 994 Forumite
    500 Posts Second Anniversary Name Dropper Photogenic
    Tattie63 said:
    I have applied for tax refund,yesterday.
    In relation to the tax on my £28k initially.
    But today when I saw my monthly payment,taxed even more.
    Thought I need to speak to someone.
    Thanks for your help.
    Been trying to telephone HMRC all morning.
    They have probably assumed, wrongly, that the £28k withdrawal is a regular monthly one which has messed up your tax code.
    Possibly but it seems incredibly quick work for HMRC to have acted on information about the £28k, sent a new tax code for the existing pension and the pension payer to have started to use the new code!
    They were very quick when i started my annuity!
  • Tattie63
    Tattie63 Posts: 25 Forumite
    Sixth Anniversary 10 Posts
    Eventually spoke to HMRC today and assured myself it will get rectified before end of tax year.

  • Tattie63
    Tattie63 Posts: 25 Forumite
    Sixth Anniversary 10 Posts
    Eventually sorted out with tax.Had to complete P55 form.
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