Reclaiming Tax on Pension Withdrawal

vonsworld

Hello

I have already made some withdrawals from my small private pension and used up all the 25% tax free amount.

When I make another small withdrawal only £300 will Standard LIfe my provider take tax at source so that I only receive 80% of the amount requested?

I should not be paying any tax and therefore which HMRC form do I use to claim the money back please? I have looked at their website but there are several options.

Finally if I make several small withdrawals, do I claim the tax back on each of them straight away, or do I need to wait until the end of the financial year?

Please could someone in a similar situation offer some advice.

Thanks
Robin

dunstonh

Finally if I make several small withdrawals, do I claim the tax back on each of them straight away, or do I need to wait until the end of the financial year?

Making regular ad-hoc withdrawals is a bit messy.   
Could you not just set up a regular withdrawal? (i.e monthly)  or alternatively make a sufficient single draw to cover the tax year?

Claiming back is probably better to wait until March if you are going to keep up with the small ad-hoc draws. Especailly as each later draw will take into account tax paid on the earlier one.

Linton

For £300 I dont believe any tax will be deducted....

If this is your first ever taxable withdrawal from this pension the provider will use an emergency tax code which entitles you to £12570/12=£1047 of tax allowance.  This is well over your lump sum..  For subsequent taxable withdrawals HMRC will issue a tax code based on the total income they believe you will be receiving in that tax year.

LITRG

Good afternoon, we have a page of info on how PAYE works on pension withdrawals and the different refund processes: https://www.litrg.org.uk/pensions/pension-withdrawals/pensions-flexibility/how-tax-collected-flexible-pension-payments
Hope its helpful! 

sgx2000

P55 form....
Just doing it myself

vonsworld

Thanks for all your replies, have received the money now and on this occasion there was no tax, probably because it's a relatively small amount 🙂