Income tax on a SIPP withdrawal

Yarmy

Hi,

I've just made my first taxable withdrawals from a SIPP and am a bit unsure about the tax on the 2nd withdrawal.

The first payment was for just under £500 and was paid gross. HMRC have adjusted my tax code to take into account the tax due @ 20% on the withdrawal.

With the 2nd withdrawal of £750 it was made net and Standard Life have deducted £40, but I'm unsure how this has been calculated - SL have confirmed its for the tax due and the £40 is showing on my HMRC as tax being paid.

I was expecting £150 tax to be deducted (£750x20%) so was wondering if anyone maybe able to shed any light on how the £40 has been calculated ? I've queried it with SL so would I be better to wait for their explanation ?

I was just worried that I was going to get stuck with a tax bill at the end of the tax year.

Thanks

Dazed_and_C0nfused

Yarmy said:

Hi,

I've just made my first taxable withdrawals from a SIPP and am a bit unsure about the tax on the 2nd withdrawal.

The first payment was for just under £500 and was paid gross. HMRC have adjusted my tax code to take into account the tax due @ 20% on the withdrawal.

With the 2nd withdrawal of £750 it was made net and Standard Life have deducted £40, but I'm unsure how this has been calculated - SL have confirmed its for the tax due and the £40 is showing on my HMRC as tax being paid.

I was expecting £150 tax to be deducted (£750x20%) so was wondering if anyone maybe able to shed any light on how the £40 has been calculated ? I've queried it with SL so would I be better to wait for their explanation ?

I was just worried that I was going to get stuck with a tax bill at the end of the tax year.

Thanks

What tax code was issued to Standard Life?

Yarmy

Under the Standard Life section it shows BRX. I'm still working and under my employers section it shows a tax code of 1120LX which I believe is is the adjusted code to take account of the 1st wihtdrawal.

Dazed_and_C0nfused

Yarmy said:

Under the Standard Life section it shows BRX. I'm still working and under my employers section it shows a tax code of 1120LX which I believe is is the adjusted code to take account of the 1st wihtdrawal.

When you look at your Personal Tax Account details for Standard Life what does it show the taxable payment and tax code for this second payment?

Yarmy

I'm not sure if I'm looking in the wrong place but I can't see a tax code for the £750 payment, it just shows taxable income of £750 and income tax paid of £40

There is a table showing the taxable income and tax paid from the Standard Life policy which is where I've picked up the above figures from.

The screen before that says that the tax code for this policy is BRX

Under my current employment section it shows a tax code of 1120LX.

Thanks for any help.