Reclaiming tax overpayment on pension lump sum

peadar

I withdrew a partial lump sum from a Prudential AVC in the tax year 2023-24. I chose the amount with a view to staying within the lower tax bracket for that year and gave the Pru my tax code, but they deducted tax at the emergency tax code rate (which seems to be the higher rate?).

My question is: how do I reclaim any overpaid tax? I started on the P55 ("Claim back tax on a flexibly accessed pension overpayment") at tax.service.gov.uk but it refers specifically to the current tax year rather than the previous tax year (and I suspect isn't the right one anyway?!). I don't normally complete a self-assessment tax return (not self-employed, high-income, landlord etc).

dunstonh

but they deducted tax at the emergency tax code rate (which seems to be the higher rate?).

Emergency tax is a combination of the tax bands.

My question is: how do I reclaim any overpaid tax? I started on the P55 ("Claim back tax on a flexibly accessed pension overpayment") at tax.service.gov.uk but it refers specifically to the current tax year rather than the previous tax year (and I suspect isn't the right one anyway?!). I don't normally complete a self-assessment tax return (not self-employed, high-income, landlord etc).

Its too late to do it using P55.  You have to do it in the same tax year you take it.     As it's a new tax year, you will need to notify HMRC via self-assessment.  

Notepad_Phil

dunstonh said:.

My question is: how do I reclaim any overpaid tax? I started on the P55 ("Claim back tax on a flexibly accessed pension overpayment") at tax.service.gov.uk but it refers specifically to the current tax year rather than the previous tax year (and I suspect isn't the right one anyway?!). I don't normally complete a self-assessment tax return (not self-employed, high-income, landlord etc).

Its too late to do it using P55.  You have to do it in the same tax year you take it.     As it's a new tax year, you will need to notify HMRC via self-assessment.  

Or  wait for the HMRC to spot it and give you a refund - but that could take a while as I believe these letters are sent out between June and November: check https://www.gov.uk/tax-overpayments-and-underpayments for more details on what types of people will receive letters etc.

Dazed_and_C0nfused

peadar said:

I withdrew a partial lump sum from a Prudential AVC in the tax year 2023-24. I chose the amount with a view to staying within the lower tax bracket for that year and gave the Pru my tax code, but they deducted tax at the emergency tax code rate (which seems to be the higher rate?).

My question is: how do I reclaim any overpaid tax? I started on the P55 ("Claim back tax on a flexibly accessed pension overpayment") at tax.service.gov.uk but it refers specifically to the current tax year rather than the previous tax year (and I suspect isn't the right one anyway?!). I don't normally complete a self-assessment tax return (not self-employed, high-income, landlord etc).

You don't need to do anything, and certainly shouldn't register for Self Assessment just for this reason.

There is no need to reclaim anything as HMRC will automatically refund any overpaid tax sometimes in the next few months.

https://www.gov.uk/tax-overpayments-and-underpayments

Once you get the P800 calculation you can go onto your Personal Tax Account and transfer the money into your bank account.

Qyburn

Dazed_and_C0nfused said:

You don't need to do anything, and certainly shouldn't register for Self Assessment just for this reason.

A counter argument is you'll get your refund quicker. Last year I submitted my SA return on 24th April,  and got the refund early May.