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  1. #1

    Tax Payed Tax Rebate

    March in the tax year is a good time to re-ask this question i think.

    Can we make the following assumptions......................
    That i am retired and receive no taxable income from any other source than my private pension.
    That the amount i will take this financial year from my pension is the first drawdown and is below my tax threshold.
    That my pension provider will tax this amount using an emergency code.

    So, in a nut shell HMRC has an amount of my drawdown which i can now claim 100% back.
    Do i have to wait till the next tax year to claim it back?
    Can i do this online?
    Do i use form P55 to do this?
    How long does it usually take to receive your refund?

    Looking forward to your comments

  2. #2
    My understanding is that if this is the only source of income then HMRC will issue to your Pension Provider a tax code assuming that you will draw the same amount each month from the pension.


    Therefore any emergency tax/ overpayment of tax will be refunded later in the tax year, probably reasonably quickly. If you draw below the Personal Allowance limit then there will be no tax to pay.

  3. #3
    You can get the refund before the end of the tax year - though given the date probably not for this tax year:

    https://www.gov.uk/claim-tax-refund/you-get-a-pension

  4. #4
    You are self employed but earning below the threshold for tax.
    You draw ONE payment from your drawdown (not a regular monthly amount) that takes your income just up to the tax threshold.
    Your pension provider taxes you at the emergency rate.

    Is it best to fill out the form linked to above? OR just wait and fill in your tax return and claim the tax back via that?

  5. #5
    Depends how much tax you have to pay and how urgently you need it refunded.


 

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