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Reclaiming Tax on Pension Withdrawal
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vonsworld
Posts: 93 Forumite
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
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
0
Comments
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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.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
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.0 -
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!“Official Company Representative
I am an official representative of LITRG (Low Incomes Tax Reform Group) part of the Chartered Institute of Taxation who are an educational charity. We are not part of MSE or HMRC. MSE has given permission for me to post on the Forum but this does NOT imply any form of approval of my organisation or its products by MSE. We can’t give individual advice, but if you require further help, we recommend that you contact a tax adviser, HMRC or one of the tax charities where relevant. You can find more information about where to get help with tax here. If you believe I am posting inappropriately please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"0 -
P55 form....
Just doing it myself0 -
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 🙂0
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