How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TonyTax Your Own Question
TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

I have just cashed my pension in with JFM for the amount of

Resolved Question:

I have just cashed my pension in with JFM for the amount of £5562.88 and they have notified me that they have sent you a cheque for £834.40 out of that amount. As I do not pay tax can you let me know if that is correct. DianeXXXXXXX XXXXXXXX

Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

This site has no connection to HM Revenue & Customs. However, I can answer your question.

You have cashed in a pension under the "trivial pension" rules. The first 25% of the fund (£1,390.72) will have been paid to you tax free and the balance of £4,176.16 will have had tax deducted at 20% (£834.40). You should have received a cheque for £4,728.48.

If you do not pay tax, you can reclaim the tax deducted by completing an online form P53. Read the notes under the heading "Claiming a refund on a pension lump sum" here. You can also get a paper version of the form by calling the Taxes Helpline.

I hope this helps but let me know if you have any further questions.
TonyTax and other Tax Specialists are ready to help you

Related Tax Questions