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Mo Tax Expert
Mo Tax Expert, Accountant
Category: Tax
Satisfied Customers: 637
Experience:  Accounting and Tax Expert
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Morning, My husband took out lump sum on his pension last

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JA: Have you talked to a tax professional about this?
Customer: My husband took out lump sum on his pension last Yr. He's still working buy cause it was over the 25,000 he had to pay back 6,000 on the lump sum. Can he claim this bk.
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: Other thing is as he earned 32,000 with his wages and lump sum of 25,000 that took him over 50,000 his now got to pay back another 4,000 as he awrs this. It seems so unfair all this tax.

Hi and welcome to JustAnswer. I’m Mo Barrie, Qualified Accountant and Tax Expert. I’m currently reviewing your question and will respond to you shortly.

Thank you for your patience.

Generally, the first 25% of your pension lump sum is tax-free. The remaining 75% is taxable at the same rate as income tax. The tax-free lump sum does not affect your personal allowance.

He could file a personal tax return and declare all his income, and claim credit for the tax already paid on his lump-sum pension to see if he would be due any overpayment.

Customer: replied 15 days ago.
Thank u for that how does that work as I've got to set up a tax return for this over payment of 4,000 pounds.

You would register with HMRC to file a personal tax return. Or Hire a professional to do it for you.

Mo Tax Expert and other Tax Specialists are ready to help you