Paying income tax when taking money out of drawdown pension

trevjl

Thanks very much, that did the trick.

XzavierWalnut

UPDATE
Received my £1k today, not tax deducted. Tax code issued 120T.
I am going to change my code to 5000, and drawdown another £4k for this tax year.
Is there any issue with doing this immediately?

molerat

What is your tax account currently showing for the expected income from that source ?

Where is the rest of your tax allowance being used ?

What is showing for the make up of the codes / allowance ?

Weird that they have issued a low code if you have no other income stream.

XzavierWalnut

It is showing as £1200.
My tax code was split into 3 [now 4].
My wife has the marriage allowance and the rest split between 2 [now 3] pensions.
One of the pensions was allocated as 951, but I only receive £2,500.

molerat

The first thing you need to do is adjust all 4 income stream estimates to the correct amounts otherwise you will be taxed on £3800 of that £4K - and that is if you take it in March, it will be more if taken earlier - and see where that goes tax code wise.