If you register as self-employed, you won't have a tax code as tax codes are not operated against income form self-employment.
If you take all the cash out of your pension, you should get 25% as a tax free sum but the balance will be taxed. The pension payer may ask you what tax rate you pay. Given that you haven't earned anything in the current tax year, you can tell them that and they should tax some of the payment at least at 20% depending on the size of the taxable payment itself. At the end of the 2016/17 tax year, you will be issued with a tax return in which you should dislcose your business income and expenses and your pension receipt. You will either owe sonme tax or be overpaid depending on the level of your business profit and the tax deducted from the pension payment.
I hope this helps but let me know if you have any further questions.
The tax will be deducted by the pension company and you will receive the net amount.
They won't necessarily deduct 40%. As I said earlier, they may ask you what rate of tax you pay. If they do, you might say 20% because you don't know how much you will earn in your new business in the first year.
You should check with the pension company as they all appear to do it different ways. If you take it before you start the business you might have much less tax deducted.
Hi.I'm just following up to find out if my answer helped or if you have any further questions.