Tax code BR

Pat38493

If the tax code on one of my income streams for next tax year is BR (cumulative), and I want to withdraw my entire annual amount as one amount (about £35K), will this work and will I only pay 20% tax on the withdrawal?

Isthisforreal99

Have you taken out some of that pot before to have a tax code in place? If so then yes only 20% would be deducted at source but depending on your other income (i.e. will the £35k take you into higher rate tax) you may have a tax bill at the end of the year.

And if the £35k does take you into higher rate tax is that a sensible thing to do.

molerat

Yes, a BR code means you can take whatever and whenever you want and 20% tax will be deducted, BR & BRX may have marginally different outcomes with multiple withdrawals. It is only a numerical code that could be constrained by needing a M12 withdrawal. Whether or not that would be the correct amount of tax is a whole different subject.

Pat38493

https://forums.moneysavingexpert.com/discussion/comment/81879917#Comment_81879917

Yes well the 35K for example would take me just to the top of the 20% band after taking into account my DB pension - I am just trying to figure out whether I can just take the whole annual amount in a single withdrawal without getting temporarily hammered for tax. And yes I have taken a couple of small withdrawals already so the tax code is the one that HMRC has given.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81880764#Comment_81880764

From what you have posted there is no reason to think the tax deducted at source will be anything other than 20%.

The actual tax ultimately payable will depend on your other taxable income but it could well be that 20% is correct.

If you are old enough to receive a Winter Fuel Payment from DWP then you would also to pay that back as your income would exceed the threshold for retaining it.