reclaiming tax on pension encashment

tim123456789
tim123456789 Posts: 1,787
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Hi

Having retired early I have encashed my trivial pension account(s).

These have has some tax deducted at source.

As my income for the year is less than the personal allowance, am I entitled to a refund of this tax?

and if so, how do I do it?

There is no obvious box for this on my tax return.

The pension company sent me a P60 (entitled Details of employee leaving work!) does this mean that I add it to the employment section of the SA form?

anyone any ideas?

Comments

  • Mnd
    Mnd Posts: 1,699
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    You need to fill in a form p55
    You can do it online through your gov account

    Easy, took about 3 weeks to get the refund
    No.79 save £12k in 2020. Total end May £11610
    Annual target £24000
  • BoGoF
    BoGoF Posts: 6,969
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    Was this last tax year or this tax year?
  • greenglide
    greenglide Posts: 3,301
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    It goes on "UK pensions, annuities and other state benefits received" which is at the very beginning as part of "Income".


    At least it is in my online one. To be fair it isn't obvious that you put private pensions there!
  • tim123456789
    tim123456789 Posts: 1,787
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    Oh I see, I have to tick "Yes" to the "did you receive any pension/benefits" box before the page is added to my assessment

    Thanks everyone

    others - I received the money in March 18, if goes my 2017-18 return

    I can find no link on my home page to any form 55 and there's no search option to look for it. As I have the answer above, that's not important now, I just thought I'd tell you
  • It was P55 not 55 and the link is here

    https://www.gov.uk/government/publications/flexibly-accessed-pension-payment-repayment-claim-p55

    But as you are completing a Self Assessment return for the year in question you must not complete the P55, any tax overpaid will be resolved through your tax return
  • "others - I received the money in March 18, if goes my 2017-18 return"
    Interesting, I received some pension money in March as well, didn't fill out any forms and have already received the tax overpayment automatically. But then I don't fill out a Self Assessment return so maybe it's different [worse] if you do.
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458
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    edited 20 August 2018 at 8:59PM
    It's definitely different but isn't worse.

    The op has chosen to complete his return now.

    They could have filed it on 6 April 2018 and would long since have received any repayment due. Almost certainly before you received your overpayment.

    Someone else might not complete the return until the last minute on 31 January 2019.

    Timing for Self Assessment is generally in your hands but outside of this it is in HMRC's hands (subject to any chivvying along you did!).
  • Esox
    Esox Posts: 25 Forumite
    I have recently taken an Uncrystallised Funds Pension Lump Sum (UFPLS) and note that the 'taxable" 75% has been taxed at 27%. Unlikely that I will reach the 40% tax band in 18/19, so, more appropriately, the applied tax rate should have been 20%.

    Tried HMRC's web-based P55 to reclaim tax paid, the application process seems like a mini-tax return. Although unlike a full, year-end, tax return where the calculation is based on "actuals", the P55 is based on a forecast of potential income sources to year end: pay, pensions, UFPLS, dividends, interest, etc.

    Unfortunately, my application had to be terminated as I didn't have the UFPLS provider's "PAYE reference number" to hand.

    Will try again later in the week.
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458
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    edited 21 August 2018 at 5:42AM
    The application process will be like a mini tax return. Without knowing your expected total taxable income for the year how else would HMRC know how much tax you have overpaid?

    It sounds like the pension payer has correctly operated the emergency code and you have paid some 20% tax and some 40%, giving what then appears to you to be 27%.

    Was the gross amount of your 75% taxable payment about £7466?
  • Esox
    Esox Posts: 25 Forumite
    My UFPLS was £10,600, £2,650 tax free and £7,950 classed as taxable income with £2,209.40 tax deducted.

    Net payment £8,390.60

    I could wait to the end of the tax year but rather have the money now as I prefer to keep my tax years "self contained". Once submitted/processed, reckon I will be due a circa £620 tax refund.
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