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• # 114957
• Fri 07 Apr 2017 08:07 PM

Hello. 

Someone requested a lump sum from their pension (partial, not full amount). They requested it 2nd April but it didn't reach their bank until 6th April. Tax has been deducted at source, but which tax year does this fall into? 2016/17 as that's when requested and presumably payment sent or 2017/18 as that's when it was receive.

Help much appreciated.

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• # 114960
• Sun 09 Apr 2017 08:22 AM

There should be some paperwork accompanying the payment that should be dated and give the answer.

Dangerous to assume, but I'm guessing that the person in question was trying to get the sum within the tax year ended 05/04/17 at the last minute?

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• # 114961
• Sun 09 Apr 2017 09:22 AM

PhilCo said:

“

There should be some paperwork accompanying the payment that should be dated and give the answer.

Dangerous to assume, but I'm guessing that the person in question was trying to get the sum within the tax year ended 05/04/17 at the last minute?

”

More or less, yes. They were going to do it a week earlier but forgot. When they finally remembered, it never occurred to them that these things don't happen overnight and it took a couple of days for the payment to come through. I'm not sure if it was arranged online or over the phone but either there should be written confirmation somewhere so I'll ask what this says.

Thanks for your reply.

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• # 114964
• Tue 11 Apr 2017 09:49 AM

Hi Jane.

I had a client last year who cashed in their full pension and was taxed at source. They received a P45 from the Pension company.  Not sure if they will get a P45 if its not a full withdrawal but they should received some paperwork with the relevant tax deductions and tax year dated on it.  

Have they just taken the first 25%? as this is tax free element.

Carol

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