Have Tax Questions? Ask a Tax Expert for Answers ASAP
Thanks for your question and for asking for me
You do not sow this on the tax return - this will remin as just showing within your business accounts so that this injection of capital can be seen as just this and not as profits made
Can you advsie
1) how much you took from your pension and how much did this represent (25% or more) and how old you are
2) What tax was deducted from the lump sum
Thanks for your question
I am afraid this is getting far more involved than your original question suggested and what went from a simple question about injecting capital into a business now has pension cogitations and now tax credits.
I will answer the original question based on the fact you down drew from a pension which makes this liable to income tax - so of the £23785 you took out - this should have had tax deducted from it £4757 and this is entered onto the main return (as you advsie you are completing SA100 this is clearly a paper tax return) so fill this in at item 11 (gross payment)and 12 (tax deducted) on page TR3 and as for the tax credits (which I will dal with as this does seem to be your first time on Just Answer)
It will be treated as income for the year - the fact you choose to inject it into the business does not alter the fact that both HMRC and Tax credits will treat this as income for the year so a recalculation would arise - however you can then advsie the tax credit office of the revised figure of income that you will have this year (which will be excluding the down draw of pension) thereby reintroducing a valid tax credit claim, but you may have to pay back all or some of last years award, which they can collect a little from each 4 weekly payment made this year.
Let me know if I can assist furtehr, but it would be appreciated if you could rate me for the level of service I have supplied (or click accept)