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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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During this tax year I will have taken pension income (at various

Resolved Question:

During this tax year I will have taken pension income (at various payment times).
I am still working (PAYE) and decided to take advantage of the new flexibility around pension withdrawals from one of my private pension funds. Some of the pension I have taken since April 2015 has taken me into the higher income tax bracket of 45% if you include my salary - however HMRC tax deductions made at source by my pension provider for this income have been deducted at 40% even for the amounts thereafter at the 45% rate. I therefore will owe extra 5% income tax on a proportion of my pension income taken during this tax year.
My question is - when do I inform the HMRC? I normally complete a tax return and have done for years. So do I leave it until I do tax return for 2014/15 which is due by Jan 2017 latest or do I inform HMRC now or the end of this current tax year?
Regards
Chris
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question.When you complete your tax return 2016, you would provide details of all income/earnings in the tax year 2015-16 together with tax deductions.HMRC will calculate any tax overpayment/underpayment from that return and adjust your tax code to recover any underpayment.I would leave it to the end of the tax year and notify all income and tax deducted when you complete your tax return. I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Customer: replied 1 year ago.
Thanks - so even if you know there is tax owing it is ok to leave it until end of tax year to let HMRC know through the tax return. I have yet to complete my tax return for 2014/15 so I don't need to make reference to it when I complete this one?
Expert:  taxadvisor.uk replied 1 year ago.
Chris, thanks for your reply.
Tax owing is for the current year and as all your income (earned income and pension) is taxed at source, I would leave it to such time when you have to file the tax return for this tax year.
this has no bearing to last year's tax return.
I hope this is helpful and answers your question.
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4803
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer.
Best wishes.

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