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 bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3811
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I have had a large amount deducted from my pension pot, withdrawn

Customer Question

I have had a large amount deducted from my pension pot, withdrawn in April. I believe this was done using an emergency tax code. I have been told that I cannot claim any rebate until next April. I do not normally pay tax as I only have maintenance coming in to live off. Can the IRS really keep this overpayment for a whole year?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to assist you with your question. The general consensus is that IRS can and frequently do this. I am assuming that this is an USA query. If it is an UK tax query then write to your tax office and explain the position and the excess tax deducted may be refunded fairly speedily, providing your tax affairs are not over complex. I do hope that my reply has been of some help.
Customer: replied 2 years ago.
Thanks but it is a UK question. I have had 2 letters from HM Revenue&customs. They say as the income for the tax year is more than £100,000 it will now be dealt with under self asses.system. I feel as though they are robbing me of a year's interest!
Expert:  bigduckontax replied 2 years ago.

Ah well, then more problems come into play. If your income exceeds 100K then you loose your personal allowance at the rate of a pound of ever two quid you go over 100K. It does not surprise me that in your position HMRC will not budge with such a large income, a big chunk of which will be at the higher tax rate of 40%, and any adjustment will have to wait until you self assess at the end of the 15/16 tax year. There is always the possibility that you will actually own tax at the year end when the chips are down. If that is the case you will have until 31 January 2017 to pay any additional tax assessed.

I am so sorry to have to rain on your parade.

Please be so kind as to rate me before you leave the Just Answer site.

Related Tax Questions