Quick question - just completing tax return for a director - mix of salary/dividends, not quite into 40%. (£30K SALARY, £5K DIVIDEND)
During 16-17 he took a pension lump sum (more than 25% of fund value) and paid tax on the remaining at the time at just below 40%.
I am not sure how this is treated on the tax return. any help much appreciated. He's asked me if he can get a tax refund relating to the tax paid on pension as he wasn't a 40% tax payer during the year.
I can't see anywhere in taxcalc to put this info.
Replies (6)
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Pension co. issues P60 and you enter it under "other pensions". Taxable amount is added to other income and tax calculated in usual way.
Not necessarily, as I have found out today for a client in similar circumstances - see HMRC Pension Schemes Newsletter 40 here -
http://webarchive.nationalarchives.gov.uk/20111007154333/http://www.hmrc...