UFPLS and P60

[toofast2live]

Hi

When you opt to take a UFPLS from a SIPP I assume the provider supplies a P60. If, say, you make a £4,000 withdrawal 25% of which is tax free what will be shown on the P60.

I assume it will be £3,000 (£4K less the 25%) and a tax payment of £600 (assuming BR) and a net payment to the pensioner of £3,400.

So on the SA HMRC return you enter pension income of £3,000 and tax deducted of £600?

[swill453]

Hi

When you opt to take a UFPLS from a SIPP I assume the provider supplies a P60. If, say, you make a £4,000 withdrawal 25% of which is tax free what will be shown on the P60.

I assume it will be £3,000 (£4K less the 25%) and a tax payment of £600 (assuming BR) and a net payment to the pensioner of £3,400.

So on the SA HMRC return you enter pension income of £3,000 and tax deducted of £600?

Yes the taxable £3000 will be shown as income on the P60. However the tax taken won't necessarily be basic rate. You're more likely to be taxed with an emergency month 1 tax code, so it will depend on when in the tax year you took it.

You don't need to wait until you get the P60 before filling in the SA return, all the information you need regarding the UFPLS will be on the payroll slip you get with it.

Also you don't need to wait until the end of the tax year to claim any extra tax taken off a UFPLS payment, you can fill in the P55 form (online) within the tax year. https://www.gov.uk/government/publicati ... -claim-p55

Scott.

[toofast2live]

Thanks!