Pension/tax claim question

luckybert

Hi,

Recently I've taken a lump sum of my pension early at 55. 25% was tax free so from my request of £5000 I got £4400 approx. Can I claim that tax back that I paid? I've seen adverts saying claim your tax back.

Albermarle

You can claim back only if the tax taken was too much. It may have been correct.

Suggest you post details of what you received and if you have regular income/are currently a taxpayer or not.

TheSpectator

Under no circumstances use a claims company to do this. If you are due a refund HMRC should automatically refund it at some point, probably from July 2025 onwards.

Marcon

luckybert said:

Hi,

Recently I've taken a lump sum of my pension early at 55. 25% was tax free so from my request of £5000 I got £4400 approx. Can I claim that tax back that I paid? I've seen adverts saying claim your tax back.

Possibly, if the tax was overpaid - but given how late we are in the tax year, that's less likely than if you'd taken the withdrawal at the start of at tax year.

See https://www.gov.uk/claim-tax-refund

sheramber

It depends on what other income you have.

luckybert

Oh so I have my full time job, maybe I'll leave it in the hands of our trusty government and to avoid any company offering to do it for me. 

Marcon

luckybert said:

Oh so I have my full time job, maybe I'll leave it in the hands of our trusty government and to avoid any company offering to do it for me. 

If you follow the link I've given above, you can easily check and DIY if necessary.

dunstonh

 I've seen adverts saying claim your tax back.

Seeing adverts like that usually means a not very reputable company looking to take you for a ride.

Oh so I have my full time job, maybe I'll leave it in the hands of our trusty government and to avoid any company offering to do it for me. 

Are you a member of your workplace pension?
Did you access the pension using UFPLS or the small pots rule?
If UFPLS, you are required by law to notify other pensions you are contributing to that you have triggered the money purchase annual allowance.   

Just mentioning it as if you haven't read what the existing provider has said in respect of tax, you may not have read that requirement either.

molerat

There is also a fair chance that you actually owe tax on that amount.  £3750 taxable withdrawn using 1257LM1, which seems probable from the numbers quoted, would pay £540.20 tax, that amount at basic rate would be due £750 tax.

luckybert

dunstonh said:

 I've seen adverts saying claim your tax back.

Seeing adverts like that usually means a not very reputable company looking to take you for a ride.

Oh so I have my full time job, maybe I'll leave it in the hands of our trusty government and to avoid any company offering to do it for me. 

Are you a member of your workplace pension?
Did you access the pension using UFPLS or the small pots rule?
If UFPLS, you are required by law to notify other pensions you are contributing to that you have triggered the money purchase annual allowance.   

Just mentioning it as if you haven't read what the existing provider has said in respect of tax, you may not have read that requirement either.

Thanks, yes it's my workplace pension and yes I've notified other providers of my action.

luckybert

hmmmm contacted HMRC and thought I'd be getting a refund of some kind and now they have increased my tax code.