pension pot lump sum advice

[jimp]

is there anyone on here thatcan help me with tax advice please, pm if possible.

[Andyg]

is there anyone on here thatcan help me with tax advice please, pm if possible.

An IFA would be the right person, however if you have a pension pot of say £100k, you can take 25% of it tax free. The remaining 75% is taxed as it would if it was income. So if you had no other income £11k/year tax free, any more in a tax year will be taxed at 25%, then 40%, etc depending on how much to take.

There is one small wringle. If your pension pot grows to over 1.035M,then the money over that amount is taxed at 55%, and then taxed again when you start to draw down.

[ALindsay]

There is one small wringle. If your pension pot grows to over 1.035M,then the money over that amount is taxed at 55%, and then taxed again when you start to draw down. If I may, just to expand, that is unless you applied previously for Individual protection for a "Lifetime Allowance" at HMRC. This value has slowly been reduced by the government.

IFA is without doubt the best course of action. If it costs 1k and saves 1.1k you are quids in.

[aldfort]

is there anyone on here thatcan help me with tax advice please, pm if possible.

Find a good IFA. That is the best advice you'll get. If it's a trivial pension then look up the rules on the HMRC web site.
In fact all the rules are on the HMRC site.

[-Ally-]

Before rushing to pay an IFA you would do well to read up on the HMRC/ .gov website and then ask any questions you may have on the MSE forums, a very helpful and knowledgeable group there.

[cgs]

You can also call Pension wise.
I believe this was set up by the government to help with pension advice
Colin

[cgs]

You can also call Pension wise.
I believe this was set up by the government to help with pension advice
https://www.pensionwise.gov.uk/en?gc...SAAEgK8yvD_BwE

Colin

[jimp]

Thanx for all the advice, its only a small pension, the main question was that i worked a lot of overtime in 2017 and wont be doing the same this year, so is it better to send the signed forms back now or wait until after april the 6th?
will i get taxed less on the pension?

[odyseus10]

Just remember that if your total income in the tax year goes above £123,000, you will lose ALL your personal allowance !!!

Income over £100,000
Your Personal Allowance goes down by £1 for every £2 that your adjusted net income is above £100,000. This means your allowance is zero if your income is £123,000 or above.

An IFA would be the right person, however if you have a pension pot of say £100k, you can take 25% of it tax free. The remaining 75% is taxed as it would if it was income. So if you had no other income £11k/year tax free, any more in a tax year will be taxed at 25%, then 40%, etc depending on how much to take.

There is one small wringle. If your pension pot grows to over 1.035M,then the money over that amount is taxed at 55%, and then taxed again when you start to draw down.

[Seiko7A38]

Find a good IFA. That is the best advice you'll get.

Yeah right. One was recommended to me. Wanted 3% of my pot value for the privilege, FFS !!

Needless to say, I found all the info I actually needed on the government website for free !

[jimp]

Just remember that if your total income in the tax year goes above £123,000, you will lose ALL your personal allowance !!!

i wish!

[Andyg]

Just remember that if your total income in the tax year goes above £123,000, you will lose ALL your personal allowance !!!

Income over £100,000
Your Personal Allowance goes down by £1 for every £2 that your adjusted net income is above £100,000. This means your allowance is zero if your income is £123,000 or above.

A proper 1st world problem that no longer affects me

[aldfort]

Yeah right. One was recommended to me. Wanted 3% of my pot value for the privilege, FFS !!

Needless to say, I found all the info I actually needed on the government website for free !

In some cases you don't have a choice. Early cash in being one example.
But some people will always go the DIY option. That's the beauty of having a choice. Glad that you had the time and the knowledge to make the DIY option work for you.
Since only qualified people can give financial advice it might explain why this question is nearly always answered with " find a good IFA" WHEN answered on a forum don't you think?