SIPP access and P55 tax reclaim

Sarahspangles

If you are registered for access to your personal tax account, once your pay has been processed you will be able to see that your employer has notified HMRC that your employment has ended. Or if not, you can do so yourself. This should ensure the tax code that is triggered by your first UFPLS is correct, and so long as your final UFPLS is in March, at that point your tax will be as correct as possible - though it’s always provisional until the reconciliation process after the end of the tax year.

pterri

Sarahspangles said:

If you are registered for access to your personal tax account, once your pay has been processed you will be able to see that your employer has notified HMRC that your employment has ended. Or if not, you can do so yourself. This should ensure the tax code that is triggered by your first UFPLS is correct, and so long as your final UFPLS is in March, at that point your tax will be as correct as possible - though it’s always provisional until the reconciliation process after the end of the tax year.

I’ve read that if I take a small initial UFPLS then it won’t trigger the 40% rate (I’ll be well under that)? So will Vanguard (my SIPP provider) use a code that the HMRC give them? 

Dazed_and_C0nfused

pterri said:

Sarahspangles said:

If you are registered for access to your personal tax account, once your pay has been processed you will be able to see that your employer has notified HMRC that your employment has ended. Or if not, you can do so yourself. This should ensure the tax code that is triggered by your first UFPLS is correct, and so long as your final UFPLS is in March, at that point your tax will be as correct as possible - though it’s always provisional until the reconciliation process after the end of the tax year.

I’ve read that if I take a small initial UFPLS then it won’t trigger the 40% rate (I’ll be well under that)? So will Vanguard (my SIPP provider) use a code that the HMRC give them? 

The emergency tax code (1257L) will be used on the first payment.  So no tax would be deducted if that was no more than £1,048.

Once the first payment is reported to HMRC by Vanguard then HMRC should notify Vanguard of the tax code to be be used on future payments.

jaybeetoo

Just take out the minimum for the first payment (e.g. £100).  This will trigger you getting the correct tax code about 30 days later which will than be used for subsequent withdrawals.