BR tax code on SIPP

aroominyork

OH has just made her first SIPP withdrawal, UFPLS, and received a notification from HMRC of a BR tax code for future withdrawals. That seems correct since her SP and NHS pension more than use up her tax allowance. My question is whether the provider will take a straight 20% from her taxable SIPP withdrawals no matter which month they are in or how much they are for? She aims to avoid going into the 40% tax band so it should be academic, but I'd like to know nonetheless.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6661338/br-tax-code-on-sipp

They should only take 20% from any future payments, irrespective of how much it is.

aroominyork

https://forums.moneysavingexpert.com/discussion/comment/81937537#Comment_81937537

Thank you. She is due a refund of a few £k on the first withdrawal. It is too late (post-14 March) to submit a P55 and she will cannot complete self-assessment until June. If she makes a small UFPLS withdrawal tomorrow and it is processed before 2 April, will an adjustment be made and the refund added to the funds she receives?

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/81937586#Comment_81937586

Why can't she file a return till June.

If the code is cumulative and it's not too late for the pension company to run it this tax year then any refund would be made via the pension company.

aroominyork

https://forums.moneysavingexpert.com/discussion/comment/81937592#Comment_81937592

She needs to wait for her NHS pension statement which arrives late May at best. I know she could estimate but we'd rather do it once and correctly.

I do not know if a straight BR is cumulative. Is it? But looking at her Interactive Investor account, it shows her code as 1257L Month 1 so I guess they have not yet processed the new code HMRC sent to her today. But my question stands, assuming ii updates the code quickly.

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/81937601#Comment_81937601

I assume you mean P60? Surely her March payslip gives all the information she would need - assuming she gets one.

Been a while aince I had dealings with payroll but the pension company may not have been notified of the tax code as there comes a point where it's too late in the tax year to operate it and HMRC do not issue it to the employer/pension payer. Things may have changed with real time information.

aroominyork

https://forums.moneysavingexpert.com/discussion/comment/81937609#Comment_81937609

Maybe the NHSBA document is a P60. But she does not get a monthly statement emailed… although maybe you have a point and she should log onto the portal. Thanks.

I'm not sure about "too late in the year". That may be so given the 14 March cut-off HMRC mentioned to her on the phone, but they issued the code today so I assumed they will not sit on it until 6 April before notifying ii.