In March 2023 I took out the maximum possible remaining tax free lump sum from my SIPP which amounted to some £62,500. At the same time the pension provider (AJ Bell) calculated there was ~£40k due in tax due on the enforced crystallisation of the remaining funds that was due on my 75th birthday and deducted this. As far as I knew this settled all the tax liability. (It arose bc my occupational pensions had resulted in a notional capital sum which had eroded my LTA so the total used was 110% of my (protected) limit of £1.5M).
But now I have had from HMRC a Self Assessment Calculation showing a further £47610.00 due by 31 January 2025 in respect of FY 23/24) PLUS a payment on account for 24/25 of a further £24k. The narrative entry for this says "Total pension savings charges (£87,285.00 minus tax treated as paid £39675.00".
I think they may be under the impression the PCLS was the first of a continuing series of taxable payments. How do I go about contesting this and is it better to pay the sums demanded in the mean time?
All help and advice gratefully received!
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