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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 15473
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I withdrew a pension of £30k last year and was taxed £11k as

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I withdrew a pension of £30k last year and was taxed £11k as 25% was tax free, however I was working in Dubai, shouldt this have been tax free?
JA: Have you talked to a tax professional about this?
Customer: Not yet?
JA: Anything else you want the Accountant to know before I connect you?
Customer: No just this please

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Hi

Its fine from the Uk tax point of view that you had 25% tax free as that's the eligible downdraw of the pension pot known as the pension commencement payment but the tax department of the UAE could have a tax position to consider - which is zero tax as tax free

So you have nothing further to be concerned over it was allowable as tax free

Thanks

Sam

Customer: replied 11 days ago.
No my point is should i approach HMRC and ask for the £11k back as i was not a UK resident at the time
Customer: replied 11 days ago.
Basically can i make a claim for a rebate?

Hi

What was the £11000 tax on ? as you said you withdrew 25% tax free

Thanks

Sam

Customer: replied 11 days ago.
The pension pot was £39k I was taxed £11k and received £28k

HI

Then you are due a full refund if deemed to be not resident for the whole of 2019/2020 do you have to file a self assessment tax return due to working abroad for 2019/2020?

Thanks

Sam

Customer: replied 11 days ago.
I have never filed a self assessment tax return before, do you advise i do?

Hi

Only if you need to - I assume you told HMRC you left the UK to live and work abroad - and have no UK income arising such as rental income or anything else

Thanks

Sam

Customer: replied 11 days ago.
I did inform HMRC to see if i still need to pay any NI contributions, however I returned back to the Uk on 26th May 2020 so i was an Expat for exactly 2 years from 26th May 2018 to 26th May 2020, i just want to know if I can approach HMRC for this rebate

Hi

Yes as already stated - you just write in and provide them with the fact you left the UK 26/05/2018 and returned 26/05/2020 and that on (whatever date) you took out your pension pot of which 25% was paid tax free and the remaining taxed - that this is you only income for the year - that's you are due personal tax allowances but were deemed not resident for 2019/2020 and wish to claim a tax refund

You may find they will insist you complete a self assessment - but then you are under their review which keeps this tidier of them asking for a self assessment

Thanks

Sam

Sam and other Tax Specialists are ready to help you
Customer: replied 11 days ago.
Ok Sam, thanks for your help, very helpful