Reclaim emergency tax on pension withdrawal

Squint

eskbanker said:

Squint said:

He tried to reclaim most of the tax as he understood the rules changed at the start of this tax year.

Don't suppose it affects the main issue but what specifically was he thinking of here?

https://www.saga.co.uk/money-news/avoid-pension-over-taxation?srsltid=AfmBOop_9aoOo-_MUlobtj-jp8bhcqjK4XY7ABmL4zfxIdy9LUNmWbBS

Squint

Dazed_and_C0nfused said:

sheramber said:

Could it be a P45 for his employment ceasing?

Could be, but HMRC assume employments have ended if several months go by without any Real Time Information submissions.

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye63025

He was not intending to draw down any more on the current tax year, so this is his sole income for the tax year. 

Thanks yes except that he turns 66 right at the end of the current tax year so may get a small amount of state pension.  He hasn't worked in the current tax year and won't, so his only income will be what he has drawn down plus a small amount of state pension.

eskbanker

Squint said:

eskbanker said:

Squint said:

He tried to reclaim most of the tax as he understood the rules changed at the start of this tax year.

Don't suppose it affects the main issue but what specifically was he thinking of here?

https://www.saga.co.uk/money-news/avoid-pension-over-taxation?srsltid=AfmBOop_9aoOo-_MUlobtj-jp8bhcqjK4XY7ABmL4zfxIdy9LUNmWbBS

Ah right, not sure that actually affects those taking one-off lump sums with no other taxable income though, as my understanding is that it relates to adjusting PAYE tax codes to be used for subsequent income later in the year.