Tax and Drawdown

montventoux

https://forums.moneysavingexpert.com/discussion/comment/81903203#Comment_81903203

Understood, thanks.

DRS1

I may be missing something but don't you get P800s for tax years which have already finished? So that won't relate to what she is drawing in this current tax year will it?

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81903868#Comment_81903868

Yeah, I don't really know why the op has said that given the problem actually seems to be taking a payment in month 11

montventoux

Apologies, no P800.

Can I just double check that if my DW withdraws a nominal amount (say £1) this month from her flexible access drawdown pension then the Pension Provider would then initiate the tax refund via PAYE?

molerat

Yes. She could in fact take £10 and receive £196.80 as the PAYE allowance is £11319.12 and there is not a whole pound left over to tax. (assuming she had £186.80 tax deducted and not the £170 you quoted)

montventoux

https://forums.moneysavingexpert.com/discussion/comment/81909477#Comment_81909477

@molerat - thanks

(DW had £187 tax deducted as per my first post).

molerat

Looks like they use some slightly dodgy PAYE software then 😐️

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81909600#Comment_81909600

Looks correct to me.

If pension income was £11,310 and tax free allowances at month 11 were £10,375 that leaves £935 to be taxed.

£935 x 20% = £187.00

molerat

1131 at M11 is £10375.86 leaving £934 to be taxed