Tax refunds on pension lump sums
sue4bill
Posts: 1 Newbie
in Cutting tax
I have recently cashed in a pension and an advert from pensionstaxrebate keeps coming up on facebook claiming you can claim back a tax rebate off your lump sum. It says it is recommended by trust pilot but dont like going ahead with these sites unless I can find out more info.
Has anyone had dealings or even if its true
Has anyone had dealings or even if its true
0
Comments
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They cannot do anything you cannot do yourself but they will charge you for doing it.
If you want to post your annual income, pension pay out and the tax paid someone may be able to advise you if a refund is due0 -
I have recently cashed in a pension
Did you take a 25% tax free pension commencement lump sum with the balance taxed by the provider before you received it?
In this case, is is quite possible that you may have overpaid (or even underpaid) tax.
See https://adviser.royallondon.com/technical-central/pensions/benefit-options/emergency-tax-and-lump-sum-withdrawals/
which explains the system.
As you can see, it is possible for you to claim back any overpaid tax by using the appropriate HMRC form.0 -
My wife opened a SIPP with HL last tax year and paid in £2880 to get the £720 top up. She withdrew £2600 and left £1000 in to keep the account open to repeat it this tax year. When she withdrew the UPLS she got £650 tax free as expected, but paid just over £192 tax on the taxable part even though her only other income was around £9300 from another work pension. My understanding is that they used an emergency tax code that treated the money as a "month 1 payment", which assumes she will get that amount every month, although I did find it a bit strange since she took the money in the last month of the tax year (March).
I assumed she would have received the refund by now, but when you look on Gov.Uk it says that her income for 2018/19 hasn't been calculated yet. However, elsewhere you are able to look at what she earned in 2018/19 and her complete earnings on both her normal pension and the SIPP lump sum are there along with the tax she paid.
Additionally they changed her tax codes on her normal work pension for this tax year and she is paying about £5 tax on that every month now even though it's only £805 a month. I have looked at claiming the refund, but there seem to be different forms to fill in and I can't work out which one it is. They are also asking for information like a code for the tax office, but I can't see anything on her HL account that gives this information. They don't seem to make it easy and how long are you supposed to wait until they sort this out? I mean it is August now!0 -
Ask your wife to telephone HMRC and explain the situation regarding her current tax code and the overpayment for last year.
She should make sure that she has all the figures to hand together with her NI number.
https://www.gov.uk/government/organisations/hm-revenue-customs/contact/income-tax-enquiries-for-individuals-pensioners-and-employees
Early in the morning is a goood time to ring.0 -
I have recently cashed in a pension and an advert from pensionstaxrebate keeps coming up on facebook claiming you can claim back a tax rebate off your lump sum. It says it is recommended by trust pilot but dont like going ahead with these sites unless I can find out more info.
Has anyone had dealings or even if its true
Financial ad on Facebook. If that isn't enough to give it a wide berth, what would be?0 -
bioboybill wrote: »My wife opened a SIPP with HL last tax year and paid in £2880 to get the £720 top up. She withdrew £2600 and left £1000 in to keep the account open to repeat it this tax year. When she withdrew the UPLS she got £650 tax free as expected, but paid just over £192 tax on the taxable part even though her only other income was around £9300 from another work pension. My understanding is that they used an emergency tax code that treated the money as a "month 1 payment", which assumes she will get that amount every month, although I did find it a bit strange since she took the money in the last month of the tax year (March).
I assumed she would have received the refund by now, but when you look on Gov.Uk it says that her income for 2018/19 hasn't been calculated yet. However, elsewhere you are able to look at what she earned in 2018/19 and her complete earnings on both her normal pension and the SIPP lump sum are there along with the tax she paid.
Additionally they changed her tax codes on her normal work pension for this tax year and she is paying about £5 tax on that every month now even though it's only £805 a month. I have looked at claiming the refund, but there seem to be different forms to fill in and I can't work out which one it is. They are also asking for information like a code for the tax office, but I can't see anything on her HL account that gives this information. They don't seem to make it easy and how long are you supposed to wait until they sort this out? I mean it is August now!
As said, phone them to sort it and next year, to avoid this, take out less than 1/12 the tax limit in one month and the rest in subsequent.0 -
My wife opened a SIPP with HL last tax year and paid in £2880 to get the £720 top up. She withdrew £2600 and left £1000 in to keep the account open to repeat it this tax year. When she withdrew the UPLS she got £650 tax free as expected, but paid just over £192 tax on the taxable part even though her only other income was around £9300 from another work pension.
If she has applied for Marriage Allowance for that tax year she won't actually be due a refund of all of the tax deducted. The refund would be more like £74.
If she does nothing she can expect to receive it by the end of November.
https://www.gov.uk/tax-overpayments-and-underpayments0
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