How to declare lump sum from pension

Bandy2023

OK, if I use the MSE income tax calculator here and input your details (taxable income for 23/24 tax year of £56399.72 plus £10000, live in Scotland) it calculates an income tax liability of £15,930.

You've already paid £14674 in income tax, so you look to owe a further £1256, which is "4200-2952" as quoted by greatkingrat.

You'll also be liable for HICBC of 63% of £1248, which is £786. This matches the HICBC liability you've quoted above. (It's 63% because, in 23/24, it was "1% for each £100 of taxble income above £50k". If you'd earned an extra 28p it would have cost you £12 more in HICBC.)

Hi, I'm ready to lodge my return and pay the £2042.00 tax in one go.
However, my online calculation is saying I'm owe £ 2499.61 ( !! )
Here's the full calculation pictured, can you see what's wrong that it thinks I'm due £400 more??

Dazed_and_C0nfused

Bandy2023 said:

OK, if I use the MSE income tax calculator here and input your details (taxable income for 23/24 tax year of £56399.72 plus £10000, live in Scotland) it calculates an income tax liability of £15,930.

You've already paid £14674 in income tax, so you look to owe a further £1256, which is "4200-2952" as quoted by greatkingrat.

You'll also be liable for HICBC of 63% of £1248, which is £786. This matches the HICBC liability you've quoted above. (It's 63% because, in 23/24, it was "1% for each £100 of taxble income above £50k". If you'd earned an extra 28p it would have cost you £12 more in HICBC.)

Hi, I'm ready to lodge my return and pay the £2042.00 tax in one go.
However, my online calculation is saying I'm owe £ 2499.61 ( !! )
Here's the full calculation pictured, can you see what's wrong that it thinks I'm due £400 more??

I don't think there is anything wrong, you owe £2,499.

What has gone wrong is that in an earlier post someone suggested your HICBC rate was 63% but with taxable income of £66,399 and no pension contributions or Gift Aid donations to reduce your adjusted net income your HICBC rate is 100%. 

HICBC was applied in 1% increments in 2023-24, starting at 1% with ANI of £50,100 and ending at 100% on ANI of £60,000.

Bandy2023

Dazed_and_C0nfused said:

Bandy2023 said:

OK, if I use the MSE income tax calculator here and input your details (taxable income for 23/24 tax year of £56399.72 plus £10000, live in Scotland) it calculates an income tax liability of £15,930.

You've already paid £14674 in income tax, so you look to owe a further £1256, which is "4200-2952" as quoted by greatkingrat.

You'll also be liable for HICBC of 63% of £1248, which is £786. This matches the HICBC liability you've quoted above. (It's 63% because, in 23/24, it was "1% for each £100 of taxble income above £50k". If you'd earned an extra 28p it would have cost you £12 more in HICBC.)

Hi, I'm ready to lodge my return and pay the £2042.00 tax in one go.
However, my online calculation is saying I'm owe £ 2499.61 ( !! )
Here's the full calculation pictured, can you see what's wrong that it thinks I'm due £400 more??

I don't think there is anything wrong, you owe £2,499.

What has gone wrong is that in an earlier post someone suggested your HICBC rate was 63% but with taxable income of £66,399 and no pension contributions or Gift Aid donations to reduce your adjusted net income your HICBC rate is 100%. 

HICBC was applied in 1% increments in 2023-24, starting at 1% with ANI of £50,100 and ending at 100% on ANI of £60,000.

i wondered if that was the case - seems some members on here are more accurate than others....
Appreciate your accurate help.

Albermarle

Bandy2023 said:

Dazed_and_C0nfused said:

Bandy2023 said:

OK, if I use the MSE income tax calculator here and input your details (taxable income for 23/24 tax year of £56399.72 plus £10000, live in Scotland) it calculates an income tax liability of £15,930.

You've already paid £14674 in income tax, so you look to owe a further £1256, which is "4200-2952" as quoted by greatkingrat.

You'll also be liable for HICBC of 63% of £1248, which is £786. This matches the HICBC liability you've quoted above. (It's 63% because, in 23/24, it was "1% for each £100 of taxble income above £50k". If you'd earned an extra 28p it would have cost you £12 more in HICBC.)

Hi, I'm ready to lodge my return and pay the £2042.00 tax in one go.
However, my online calculation is saying I'm owe £ 2499.61 ( !! )
Here's the full calculation pictured, can you see what's wrong that it thinks I'm due £400 more??

I don't think there is anything wrong, you owe £2,499.

What has gone wrong is that in an earlier post someone suggested your HICBC rate was 63% but with taxable income of £66,399 and no pension contributions or Gift Aid donations to reduce your adjusted net income your HICBC rate is 100%. 

HICBC was applied in 1% increments in 2023-24, starting at 1% with ANI of £50,100 and ending at 100% on ANI of £60,000.

i wondered if that was the case - seems some members on here are more accurate than others....
Appreciate your accurate help.

As anyone can post, the advice is free, and some of the subject matter quite complicated, then you should take any of it as gospel.