Standard Life Pension pot
Discussion
My SL pension is due in a month
I want to take the 25% Tax free lump sum then draw down the remaining pot till it is empty in around 12 years.
How do they go about paying me ?
I have sent them a message to ask but not had a reply as yet.
I was wondering about the Income tax due on the monthly draw down
Do I have to fill in a Self assessment and pay the tax myself?
Basic questions that may be obvious but all new to me.
I want to take the 25% Tax free lump sum then draw down the remaining pot till it is empty in around 12 years.
How do they go about paying me ?
I have sent them a message to ask but not had a reply as yet.
I was wondering about the Income tax due on the monthly draw down
Do I have to fill in a Self assessment and pay the tax myself?
Basic questions that may be obvious but all new to me.
If they're anything like my provider, and I suspect they will be, then you tell them that you want to withdraw the Tax Free Lump Sum and how much you also want to withdraw per month.
They will then pay you the Tax Free money and do a provisional tax calculation on the monthly draw, which if incorrect can be corrected at the end of the tax year. They will then pay the drawdown amount less the tax on your chosen day every month.
They will then pay you the Tax Free money and do a provisional tax calculation on the monthly draw, which if incorrect can be corrected at the end of the tax year. They will then pay the drawdown amount less the tax on your chosen day every month.
VTC said:
My SL pension is due in a month
I want to take the 25% Tax free lump sum then draw down the remaining pot till it is empty in around 12 years.
How do they go about paying me ?
I have sent them a message to ask but not had a reply as yet.
I was wondering about the Income tax due on the monthly draw down
Do I have to fill in a Self assessment and pay the tax myself?
Basic questions that may be obvious but all new to me.
The pension element will be taxed at source under PAYE procedures.I want to take the 25% Tax free lump sum then draw down the remaining pot till it is empty in around 12 years.
How do they go about paying me ?
I have sent them a message to ask but not had a reply as yet.
I was wondering about the Income tax due on the monthly draw down
Do I have to fill in a Self assessment and pay the tax myself?
Basic questions that may be obvious but all new to me.
The first time you receive taxable income via drawdown the provider, in this case Std Life, are obliged by law to tax it on a month 1 basis. This is often referred to as emergency tax.
This is invariably more than is due so you can then apply for a refund or just leave it and it will be done automatically by HMRC post the end of the tax year. Once the correct taxation amount is established a new tax code will be applied and Std Life will apply this going forward for future payments.
If you fill in the online tax reclaim form for drawdown, any refund of the excess tax is usually made within a few weeks.
This is invariably more than is due so you can then apply for a refund or just leave it and it will be done automatically by HMRC post the end of the tax year. Once the correct taxation amount is established a new tax code will be applied and Std Life will apply this going forward for future payments.
If you fill in the online tax reclaim form for drawdown, any refund of the excess tax is usually made within a few weeks.
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