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Posted Sat, 16 Dec 2023 10:18:30 GMT by
I am retired. I have been drawing from my flexi-access pension for 2.5yrs. I take @ £26k/yr. I also have a small employment DC pension which i have just taken the tax free lump sum of @9.5k from to help us out but i am not taking a regular income from it. My wife has no income. My monthly income has reduced by £34pm . My tax code has reduced from 1383M to 1177M . Why am i now being taxed at a higher level.
Posted Thu, 21 Dec 2023 08:47:27 GMT by HMRC Admin 25 Response
Hi ian renwick,
Though there may be other explanations here, it could be that your code is misinterpreting your one-off lump sum as regular income, and calculating a higher rate deduction as a result.
Please contact us by webchat or phone here:
Income Tax: general enquiries
We can update your projected income and code accordingly, and advise on any repayments due.
Thank you. 

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