Cashing in small pension. Tax question.
Discussion
Ok, I'll try and keep this as simple as possible 
My sister (aged 57) has a pension with a pot that has accrued to £12,000 give or take.
She retired from her part time job with the NHS in September 2018 earning around 3k since April 6th and did not pay any income tax on this as the tax free allowance is a tad under 12k.
She plans to "cash in" this pension as soon as possible after 6th April 2019, so bearing in mind she has definitely finished paid employment for good, by my reckoning the 12k should be paid out 100% tax free, because she has a 25% tax free pension withdrawal allowance (3k)..therefore her "income" for the tax year 2019/20 would be £9k, well under the 12k threshold.
Can anyone confirm my thoughts?
Cheers.
My sister (aged 57) has a pension with a pot that has accrued to £12,000 give or take.
She retired from her part time job with the NHS in September 2018 earning around 3k since April 6th and did not pay any income tax on this as the tax free allowance is a tad under 12k.
She plans to "cash in" this pension as soon as possible after 6th April 2019, so bearing in mind she has definitely finished paid employment for good, by my reckoning the 12k should be paid out 100% tax free, because she has a 25% tax free pension withdrawal allowance (3k)..therefore her "income" for the tax year 2019/20 would be £9k, well under the 12k threshold.
Can anyone confirm my thoughts?
Cheers.
Many thanks to both of you for the prompt replies. I guess she would be best either asking the bods at the pension company direct who handle this stuff or at her local tax office.
She would not mind paying some "emergency tax" providing it would be refunded by HMRC within a short period of time, as she definitely won't be returning to work.
She would not mind paying some "emergency tax" providing it would be refunded by HMRC within a short period of time, as she definitely won't be returning to work.
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