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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4181
Experience:  FCCA FCMA CGMA ACIS
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I earned £33695 this tax year. I am employed and on paye. Last

Customer Question

I earned £33695 this tax year. I am employed and on paye. Last September I cashed in a small pension of £40000. I received £28200 approx of which about £10000 was tax free. Am I due a rebate and will it come through my pay.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Your earnings, which I assume were for the 15/16 tax year, were 33695 + 18200 = 51895. Deduct your personal allowance of 10600 leaves 41295 exposed to tax. This will be 31785 @ 20% [6357] and 9510 @ 40% [3804] total 10161. If your insurance company taxed your pension at 40% then you might have a rebate, but they probably did not in which case you will owe some tax. In any event you must self assess for the year and HMRC wil advise you of any tax owing or alternatively send you a rebate. I do hope that you have found my reply of some assistance.