Pension income

darwins_mum

Looking for some advice please. I took a lumpsum of £15k out of a pension pot in the last financial year. I received £10k and  I paid £5k tax on this at BR according to my HMRC records. I am not of pensionable age and still employed. this amount of tax seems unusually high in comparison to the tax I have paid on other income sources. 
 I submit a tax return as I do a little self employed work in addition to my part time paye work. would I be better off speaking directly to HMRC, or would this all have been automatically calculated in my tax allowance? there was no change to my tax code after I took this money. I am a bit confused. 

p00hsticks

I'll ask for this to be moved over to the Pensions (or Cutting Tax ? ) board where you are likely to get more views and replies. 

Dazed_and_C0nfused

darwins_mum said:

Looking for some advice please. I took a lumpsum of £15k out of a pension pot in the last financial year. I received £10k and  I paid £5k tax on this at BR according to my HMRC records. I am not of pensionable age and still employed. this amount of tax seems unusually high in comparison to the tax I have paid on other income sources. 
 I submit a tax return as I do a little self employed work in addition to my part time paye work. would I be better off speaking directly to HMRC, or would this all have been automatically calculated in my tax allowance? there was no change to my tax code after I took this money. I am a bit confused. 

The tax is just provisional.

You have to include the (taxable) pension income and tax deducted on your Self Assessment return and it will be taken into account in your Self Assessment calculation.

Brie

moved to pensions

squirrelpie

Dazed_and_C0nfused said:

You have to include the (taxable) pension income and tax deducted on your Self Assessment return

Am I right in thinking that by this you mean, just the taxable part of the £15k and not any tax-free portion there might have been (typically 25%)? The OP isn't clear about how the money was taken or why they think a BR code was used, since that wouldn't result in exactly £5k tax I don't think.

Dazed_and_C0nfused

squirrelpie said:

Dazed_and_C0nfused said:

You have to include the (taxable) pension income and tax deducted on your Self Assessment return

Am I right in thinking that by this you mean, just the taxable part of the £15k and not any tax-free portion there might have been (typically 25%)? The OP isn't clear about how the money was taken or why they think a BR code was used, since that wouldn't result in exactly £5k tax I don't think.

If you include non taxable income, such as a 25% TFLS, on a Self Assessment return you are turning it into taxable income.

It isn't really clear what has happened as BR code wouldn't normally be used for a first payment (unless under the "small pots" rules) but maybe the op had taken something previous to this?

DRS1

Why was any tax deducted at all?  Did you intend to take a tax free lump sum?

Did you intend to draw taxable income from the pension?

If so do you contribute to a pension in connection with your job or self employment?

sheramber

The OP has not advised it they had previously taken money out, including any tax free amount.

Or what code was operated against the payment. 

The pension company may have been advised of a code number by HMRC if any previous payment has been taken. 

Until he provides that information we are only guessing.

dunstonh

 I am not of pensionable age and still employed. 

Have you told your employer scheme that you have flexibly accessed your pension?  You can be fined if you don't.

 this amount of tax seems unusually high in comparison to the tax I have paid on other income sources. 

In most cases it would be due to the way PAYE works which is why you can complete the online form to allow it to be corrected within the tax year.

 I submit a tax return as I do a little self employed work in addition to my part time paye work. would I be better off speaking directly to HMRC, or would this all have been automatically calculated in my tax allowance?

As you didn't complete the required form within the tax year, you just put it on your tax return, which will allow it to  be corrected via self-assessment.