UFPLS Pension taken in March

molerat

As long as that pension has 1257 cumulative set against it you can safely take the whole amount in March without any tax deducted. The pension provider has no say in it, they operate PAYE in exactly the same way as an employer does using the code provided to them by HMRC.

Dekkoblue

https://forums.moneysavingexpert.com/discussion/comment/82021707#Comment_82021707

Thanks, that's what i was wanting to hear, and you gave a good explanation as to why.

Thanks again.

bjorn_toby_wilde

The P55 form is really easy and you can get to it quickly through the HMRC app. Probably takes less time than filling in the UFPLS form.

Dekkoblue

https://forums.moneysavingexpert.com/discussion/comment/82021844#Comment_82021844

Thanks, i would be inclined to agree, the P55 is ok if you have all info need to hand, like Bank interest and previous tax/ tax free amounts from previous UFPLS.

I done it for my partner last year who asked for a £15000 FAD on a annual payment, thinking it would pay out all as one yearly payment without the tax.

With the Drawdown she only got £9871, with £5128 taken as tax, but what really upset her was the 7 weeks it took to get it back, as she promised her daughter some money for a holiday, that in the end, she wasn't able to give to her because of the 7 week delay.

cc123mm456

I agree that it should work as expected. By taking the UFPLS payment between 6th March and 5th April, the PAYE calculation will be for month 12.

One thing to check is the provider's deadline for submitting the UFPLS request near the tax year end.

My SIPP is with AJ Bell, and a couple of years ago I made a UFPLS withdrawal in month 12. At that time they advised that I must submit the request before 15th March, for it to be processed by the tax year end. I did that, and it all went smoothly.

Dekkoblue

https://forums.moneysavingexpert.com/discussion/comment/82022975#Comment_82022975

Good to know, thank you

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/82021062#Comment_82021062

The cumulative basis is the key thing, that will mean the pension payer should give you the full tax code allowance (12579 for code 1257L) in tax month 12.

And the full basic rate band.

Mick70

similar scenario- for my wife- would rather do annual than monthly but aware of tax code issues

If wait until after 6th March to do UFPLS , how do you know what your tax code is ?

molerat

https://forums.moneysavingexpert.com/discussion/comment/82039145#Comment_82039145

If it is the first draw the code will be 1257LX. To get a correct code in place for March you need to take a draw earlier in the year. From then on a code will be allocated each year.