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 TonyTax Your Own Question
TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 16335
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

I am due to take my pension at the age of 55 on 10th June

This answer was rated:

I am due to take my pension at the age of 55 on 10th June 2019. Can I confirm that if I take my tax free lump sum of 25 % around £11500 I could also take a further lump sum, at the same time of up to £29656 and only pay 20% tax. I am currently earning £20344 per annum no other benefits or income.
JA: Have you talked to a tax professional about this?
Customer: Yes I have had tax advice from pension wise & a private adviser.
JA: For which tax year do you need advice?
Customer: This tax year 2019-2020.
JA: Anything else you want the Accountant to know before I connect you?
Customer: No. Thank you.

Hi. My name is*****'m looking at your question now and will post my answer or ask for more information here in a short while.

That would be correct.

The 25% tax free pension lump sum is just that, tax free. so you can leave that out of your calculations.

You can have an income of £50,000 before you pay higher rate tax in 2019/20 so if you deduct your salary of £20,344 that will leave £29,656 of the basic rate (20%) tax band available to use against taxable pension drawings.

I hope this helps but let me know if you have any further questions.

TonyTax and 4 other Tax Specialists are ready to help you
Customer: replied 11 days ago.
No. That is fine, I just needed clarification before entering the amounts on my forms. Thank you.

Ignore the phone call pop ups if you don't need a call. They are automated and no of my doing.

Thanks.