Working out taxable income from UFPLS withdrawal

older_and_no_wiser

I've been fully retired for almost 18 months and have yet to take any withdrawals from my DC SIPP. I don't have any DB pensions and my only income since retirement has come from savings accounts and dividend stocks on Trading 212 (approx £3,200 this tax year).

I want to take my first SIPP withdrawal before the end of this tax year to take advantage of my annual income tax free allowance (£12,570).

I was going to take an UFPLS withdrawal of around £16,000. 25% of that will be my tax free pension allowance and the remainder will fall inside my income tax free allowance code.

I realise that my dividend income may be subject to tax and I'm using the HMRC site "Work out tax on your savings or dividend income calculator" for this.

The question I have is on the final section of income inputs, there's a box for "Total amount of other taxable income before deductions". This will be my UFPLS withdrawal. Based on the figures I put above, would this be £0 as my withdrawal would not be subject to any tax?

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6654415/working-out-taxable-income-from-ufpls-withdrawal

Why would you put £0 if you have taken £12,000 in taxable income 🤔

Roger175

Agreed, you put the actual taxable amount down, regardless of whether you will actually pay any tax. Ignore the tax-free amount.

older_and_no_wiser

Thanks for the prompt responses. Appreciate the difference between "taxable" and "taxed" now. Noted!