This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Pension Potts and job income

Nitros44
Posts:1
Joined:Wed Apr 13, 2016 1:09 am
Pension Potts and job income

Postby Nitros44 » Wed Apr 13, 2016 1:38 am

Hi
Just like some advice regards cashing in lump sum pensions (2)and still working.
Last October I cashed in a pension for the full amount before tax which was £23500.
I paid the tax on that pension and claimed some back as I'd paid too much hmrc refunded no problem.
Waiting for the tax year 2015/16 to finish I wanted to cash in another pension pot this time before tax was £28500,however the pension provider took the tax off and paid the remainder to my bank account on 29th March
What I would like to ask is does the 75% of the recent cashed in pension is it added to my employment income before tax which is £24000 per year and the pension I cashed in last October
I receive the personal allowance on salary £10660,so in tax year 2015/16 I paid tax on my salary and tax on 1 pension .
Like I said I wanted to wait till the new tax year incase the salary and pension income took me into the higher tax bracket of 40%
Thanks in advance for any advice

Return to “Income Tax”