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Tax rebate within tax year

swill453
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Tax rebate within tax year

#127737

Postby swill453 » March 24th, 2018, 10:50 am

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.

PinkDalek
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Re: Tax rebate within tax year

#127745

Postby PinkDalek » March 24th, 2018, 11:27 am

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

swill453
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Re: Tax rebate within tax year

#162682

Postby swill453 » August 28th, 2018, 6:35 pm

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.


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