Newsletter Autumn 2018

Pension lump sum

If you have received a lump sum payment from your pension fund you may have had excess tax deducted from it. This happens, for example, because the pension provider tends to use an emergency PAYE code for the first payment you take from your fund.

If you have had tax incorrectly deducted from a lump sum payment, you will get it back from HMRC if the pension scheme doesn’t refund it. However, there are several different claim forms, depending on the circumstances. We can help you with those forms.

If you do expect to take further pension payments in the same year, the tax repayment should be made when you receive the next pension instalment. However, for this to work, your PAYE code needs to be adjusted.

You can request a new tax code from HMRC through your online personal tax account. Alternatively, you can phone HMRC to ask for the code to be changed.

We can do this on your behalf if you have authorised our firm to act for your personal tax affairs.