Help think tax code is wrong after pension drawdown

oliel

https://forums.moneysavingexpert.com/discussion/comment/82037965#Comment_82037965

The online tax account has no tax code against the pension drawdown - it's shows as ended employment - employment ended on 1/5/26 P45 earnings of £9472.54.

oliel

https://forums.moneysavingexpert.com/discussion/comment/82038269#Comment_82038269

the earnings listed above include everything for the tax year 26/27 no further pension drawdown - total earnings for the year £42914. The £9472.54 pension drawdown is the tax free part of the drawdown excluding the tax free part - hope that makes sense.

oliel

Thanks I keyed it all into AI and it came up the following:

1. Income Summary & Taxable Base

• Total Combined Non-Savings Income: £42,977 (Salary + Drawdown + SD0 Pension)
• Less Your S1275L Personal Allowance: -£12,750
• Total Taxable Non-Savings Income: £30,227 [1]

2. True Scottish Income Tax Liability (2026/27)Your taxable income is applied to the ⁠Scottish tax brackets:

Tax Band [1, 2, 3]	Income Range	Amount in Band	Tax Rate	True Tax Due
Starter Rate	First £3,967	£3,967	19%	£753.73
Basic Rate	Next £12,989	£12,989	20%	£2,597.80
Intermediate Rate	Remaining Income	£13,271	21%	£2,786.91
Total True Annual Tax				£6,138.44

The Pension Drawdown Discrepancy & RefundWhen looking strictly at how your income layers together:

• Your primary salary (£32,059) and small SD0 pension (£1,445) use up your £12,750 allowance and the standard 19% and 20% tax rates.
• This leaves your £9,473 pension drawdown sitting entirely inside the 21% Intermediate Rate band.
• Your True Drawdown Tax Liability: £1,951.53 (9,473 × 21%)
• What Was Actually Deducted: £2,741.00
• Your Exact P53 Form Refund Amount: £789.47

Impact on Your Coding DropThe emergency over-taxation is exactly why HMRC automatically dropped your salary code down to a lower figure (like an S924). Your submitted P53 form tells HMRC's automated system to treat the drawdown as a standalone, finalized event. [1, 2, 3, 4]Once they process the form and issue your £789.47 refund, your primary employer's payroll system will receive instructions to switch you directly back to your standard S1275L code. [1]Now that we have adjusted for this code, would you like to see how much National Insurance you are paying on your main salary, or check the status of your £27 interest allowance? [1]

oliel

https://forums.moneysavingexpert.com/discussion/comment/82038269#Comment_82038269

income for 26/27 total including taxable pension drawdown £42914 no further pension drawdown in future years.

Woodstok2000

I think the AI is right - this should sort itself out once the P53 is processed at HMRC. I think you can also tell them online via your tax account how much you expect to receive as income this year, which may also speed things up.

oliel

https://forums.moneysavingexpert.com/discussion/comment/82037973#Comment_82037973

thanks cobbler - the tax code used fort he pension drawdown was 1257l w1 m 1 so i think HMRCS tax calculation is wrong and also that I am owed tax back as i was emergency taxed on it.