Need to take more money out of pension-take me over personal allowance. Taxed how?

MikMikandThriceMik

I retired early, living off pension lump sum / savings and smal pension withdrawals.

Pension withdrawals do not breach personal allowance threshold for the year.

I now need to take an unregular extra non monthly withdrawal from my pension to pay for something.

At the end of the year, without this extra withdrawl, I will be at my withrawal limit of 12570, how will the tax be taken from this extra non monthly regular withdrawal, if I withdraw a bit extrea money from my pension pot today?

Thank you.
 

molerat

Have you ever drawn taxable amounts from this pension before ?  The pension will be allocated a PAYE code by HMRC in exactly the same way as if it was a job, if you have already made withdrawals it should already have one, your on line tax account will reveal all.

MikMikandThriceMik

molerat said:

Have you ever drawn taxable amounts from this pension before ?  The pension will be allocated a PAYE code by HMRC in exactly the same way as if it was a job, if you have already made withdrawals it should already have one, your on line tax account will reveal all.

Yes it has a tax code 1087L
My other small pension has a tax code 170T

molerat

Providing there is no X/M1 suffix to that code 1087 gives you £906.59 each month tax free so a total of £906.59 in April, £1813.18 in May etc up to a total of £10879.08 in March.  Anything over those total amounts at the monthly pay point will have tax deducted by the pension provider.