For cashflow and charges reasons I'm considering taking my pension drawdown for the next tax year as a single lump sum early in the tax year, instead of a monthly "salary".
I assume I will be taxed on this according to my tax code, ie I will be over-taxed because the system will assume I'm going to get this amount every month.
Am I right in thinking there's a straightforward way of immediately reclaiming this extra tax, without having to wait until the end of the tax year?
Scott.
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Tax rebate within tax year
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- Lemon Half
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- Lemon Half
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Re: Tax rebate within tax year
I'm no expert but this might be the place to look:
Flexibly accessed pension payment: repayment claim (P55)
Use the online service to reclaim an overpayment of tax when you've flexibly accessed part of your pension pot.
https://www.gov.uk/government/publicati ... -claim-p55 or maybe this one https://www.gov.uk/government/publicati ... ur-pension
Assuming the pension body is unable to make any tax refund from https://public-online.hmrc.gov.uk/lc/co ... te=P55.xdp
Flexibly accessed pension payment: repayment claim (P55)
Use the online service to reclaim an overpayment of tax when you've flexibly accessed part of your pension pot.
https://www.gov.uk/government/publicati ... -claim-p55 or maybe this one https://www.gov.uk/government/publicati ... ur-pension
Assuming the pension body is unable to make any tax refund from https://public-online.hmrc.gov.uk/lc/co ... te=P55.xdp
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- Lemon Half
- Posts: 7962
- Joined: November 4th, 2016, 6:11 pm
- Has thanked: 984 times
- Been thanked: 3643 times
Re: Tax rebate within tax year
To follow this up:
I took a single drawdown payment of my entire personal allowance of £11,850 from my SIPP at AJBell Youinvest this month. (In fact I took a UFPLS payment of £15,800 with 25% tax free.)
As I expected, AJBell had to tax it as the "system" had no way of knowing this was going to be my only taxable income this year.
I filled in the online P55 form by following PinkDalek's link above https://www.gov.uk/government/publicati ... -claim-p55
It asks you to fill in details of any other expected income, I have none except bank interest which I had to estimate for the full tax year. Slightly annoyingly, it has no facility for entering a bank account number, only an address to send a payment order (cheque).
However today I received the cheque for the full amount of the tax taken off.
Thanks again.
Scott.
I took a single drawdown payment of my entire personal allowance of £11,850 from my SIPP at AJBell Youinvest this month. (In fact I took a UFPLS payment of £15,800 with 25% tax free.)
As I expected, AJBell had to tax it as the "system" had no way of knowing this was going to be my only taxable income this year.
I filled in the online P55 form by following PinkDalek's link above https://www.gov.uk/government/publicati ... -claim-p55
It asks you to fill in details of any other expected income, I have none except bank interest which I had to estimate for the full tax year. Slightly annoyingly, it has no facility for entering a bank account number, only an address to send a payment order (cheque).
However today I received the cheque for the full amount of the tax taken off.
Thanks again.
Scott.
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