55 on March 5th 2025

A_T

Good morning

I have had no taxable income during 24/25. I have a P45 from my previous employer dated 14.07.2024 with tax code C1278L

I have a SIPP with Hargreaves Lansdown. I would like to take out £17040 (I think that is the right amount) to put in an ISA which I think including the 25% tax free will keep me from paying any income tax for 24/25.

I'm just wondering if this is feasible before the end of fiscal year 24/25. I would rather not pay any emergency tax and have to reclaim it.

If HL will not process the P45 quickly is it possible my withdrawing a smaller amount straightaway on March 5th I might get a personal allowance tax code I can use before April 6th 2025.

My main aim is to avoid paying emergency tax. Any thoughts or advice?

Dazed_and_C0nfused

A_T said:

Good morning

I have had no taxable income during 24/25. I have a P45 from my previous employer dated 14.07.2024 with tax code C1278L

I have a SIPP with Hargreaves Lansdown. I would like to take out £17040 (I think that is the right amount) to put in an ISA which I think including the 25% tax free will keep me from paying any income tax for 24/25.

I'm just wondering if this is feasible before the end of fiscal year 24/25. I would rather not pay any emergency tax and have to reclaim it.

If HL will not process the P45 quickly is it possible my withdrawing a smaller amount straightaway on March 5th I might get a personal allowance tax code I can use before April 6th 2025.

My main aim is to avoid paying emergency tax. Any thoughts or advice?

The emergency code is 1257L, very similar to the one on your P45.

The issue is taking all the money in one pay period.

Can you confirm the pay figure(s) from the P45 🤔

A_T

Thanks for replying

The pay figure on the P45 is 0 (zero).

I should add I am happy to trigger the MPAA. That is not an issue.

SmokeysTravels

The maximum amount you can take via UFPLS is £16760 without going over your personal allowance. The personal allowance is £12570 and you can have 25% tax free on top which is £4190. If you do this in one go your pension provider will deduct some tax but you will be able to claim that back from HMRC. 

A_T

SmokeysTravels said:

The maximum amount you can take via UFPLS is £16760 without going over your personal allowance. The personal allowance is £12570 and you can have 25% tax free on top which is £4190. If you do this in one go your pension provider will deduct some tax but you will be able to claim that back from HMRC. 

but i have a p45 and a tax code - I'm hoping this means they won't.

DRS1

If HL will not process the P45 quickly is it possible my withdrawing a smaller amount straightaway on March 5th I might get a personal allowance tax code I can use before April 6th 2025.

May not be the same thing but I had my first annuity payment on 28 August 2024 and the tax code was issued on 24 September 2024 just in time for the next payment on 28 September.  So the timing might just work for you - just.

Why don't you ask HL what they will actually do about your P45?  I would try to get everything set up to go in early March if I were you.

A_T

I've discussed this with HL and it seems inevitable I will pay ET on my first payment. I'm just hoping I can get get the tax refunded before April 5 so I can put it in the 24/25 ISA

af1963

If the tax deduction is a problem for you, you could consider ( as well as the UFPLS withdrawal) making an additional withdrawal of enough extra tax free cash to make sure you can fully fund the 24/5 ISA.  Then when you get the tax refund, use that to live on, or put it in your 25/6 ISA if you don't need it for that. 

Dazed_and_C0nfused

A_T said:

I've discussed this with HL and it seems inevitable I will pay ET on my first payment. I'm just hoping I can get get the tax refunded before April 5 so I can put it in the 24/25 ISA

Are you planning on taking a second payment which will be paid by HL prior to 6 April 2025?

A_T

Dazed_and_C0nfused said:

A_T said:

I've discussed this with HL and it seems inevitable I will pay ET on my first payment. I'm just hoping I can get get the tax refunded before April 5 so I can put it in the 24/25 ISA

Are you planning on taking a second payment which will be paid by HL prior to 6 April 2025?

Yes if possible

A_T

af1963 said:

If the tax deduction is a problem for you, you could consider ( as well as the UFPLS withdrawal) making an additional withdrawal of enough extra tax free cash to make sure you can fully fund the 24/5 ISA.  Then when you get the tax refund, use that to live on, or put it in your 25/6 ISA if you don't need it for that. 

I'll be using FAD not UFPLS