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HMRC taxing pension

nicisaskinflint · 2025-03-26 16:17:27

Hi all I was wondering if anyone can advise me as to why my pension provider deducts tax at source for HMRC from my small withdrawals, which I then don't get back for a whole year after I've completed my self assessment. I have no other income and my withdrawls have always been less than my personal allowance of £12750.…

Comments

molerat Posts: 35,288 Forumite

27 March at 3:59PM edited 27 March at 4:10PM

nicisaskinflint said:
FYI my tax code is 1256L and I have never withdrawn more than £12,000 in any one tax year.

Is that all, no M1 or X suffix ? If that is the case taking a payment in M12, March, will correct the tax for the whole year even if you have taken payments earlier and paid tax, that would get refunded. Working with the PAYE system is always better than trying to fight it

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