If you have taken a trivial commutation from a final salary pension or a small lump sum from any other type of pension it is usually taxed at 20%. Check first, to see if you are owed a tax refund, in most cases the tax is correct, but sometimes there is an underpayment. If you are due a refund complete form P53.
If you have taken a payment under the pension flexibility rules it is slightly different. These payments are usually taxed on 'emergency code' which generally takes too much tax. Again check if you are due a refund. There are two scenarios and the form you use depends on whether;
All forms can be found on www.gov.uk, search for the form number or via your personal tax account (register via www.gov.uk/personal-tax-account). Alternatively contact HMRC on 0300 200 3300.
For either type of lump sum, people in Self Assessment generally reclaim/pay overpaid or underpaid tax via their tax return at the end of the year. However, in-year claims can be made, but the information must also be provided in the tax return at the end of the tax year.
If you need help to check whether you are due a refund you can call Tax Help on 01308 488066.
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