Pension withdrawal

downhillian

Thanks for all your help - it makes sense now

Mr_Benn

Just for my peace of mind, when Mrs Down withdraws the money from her pension, does she have to tell the Pension company that she hasnt earned enough to pay tax that year ? ie do they deduct the tax on the remaining 75% she withdraws unless advised otherwise.   Im just getting a bit confused about paying tax at source.   Thanks.

Albermarle

Mr_Benn said:

Just for my peace of mind, when Mrs Down withdraws the money from her pension, does she have to tell the Pension company that she hasnt earned enough to pay tax that year ? ie do they deduct the tax on the remaining 75% she withdraws unless advised otherwise.   Im just getting a bit confused about paying tax at source.   Thanks.

Pension providers will deduct tax based on the tax code they have from HMRC and the month of withdrawal, and the amount of course. They can not decide otherwise just based on a call from a client.
So difficult to be sure without knowing all the details, but it is likely that tax will be deducted and she will have to claim it back. 

Mr_Benn

Thanks Albermarle.  In hindsight just ringing and telling them dont deduct tax does sound a bit dodgy