Tax man

Mozza001

Good evening all.

I recently cashed in a small pot, 10k and got payed out £8500 cash.

I thought this was the tax taken care of, but a month later payed $400 more tax on pay day.

Next month I went part time on half pay and also payed too much tax  to complicate even further I took a second small pot 10k.

All taken this tax year, I was on 42k a year and am now on 21k a year so will end up being under the higher tax bracket.


Do I need to do anything regarding tax ie call them, fill in a form etc or will it work itself out??

Brie

Took about 2 months for my tax to sort itself out after taking a pension pot.  If you check on the government gateway HMRC site it might give the info quicker than it's getting posted or whatever to your employer.  

Marcon

Mozza001 said:

Good evening all.

I recently cashed in a small pot, 10k and got payed out £8500 cash.

I thought this was the tax taken care of, but a month later payed $400 more tax on pay day.

Next month I went part time on half pay and also payed too much tax  to complicate even further I took a second small pot 10k.

All taken this tax year, I was on 42k a year and am now on 21k a year so will end up being under the higher tax bracket.


Do I need to do anything regarding tax ie call them, fill in a form etc or will it work itself out??

What does your personal tax account say about tax codes?

If you need to reclaim, see 

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

Mozza001

Personal tax account????

I've been employed PAYE all my working life.

I get a wage slip every month.

That's it

I'm asking if I need to reclaim, as I don't know.

Albermarle

Personal tax account: sign in or set up - GOV.UK

If you do nothing, then your tax for the tax year 25/26 will be automatically calculated sometime between July and November 2026, and you will be informed of any refund due.

molerat

If your take home pay dropped it is likely your tax code was adjusted because of the pension withdrawal and assumptions made - what codes have been used on your payslips over the months ?  With an on line tax account you can see what has been done and make an informed decision about your next move.  Nobody here can state what you need to do without all the information which will be available from your tax account, it is likely you would need to adjust expected income figures in your account to get the allocated codes corrected which will allow the tax situation to sort itself out.

sheslookinhot

HMRC will be assuming that your 10k per month income is typical per month and so will tax you accordingly.