Pension Income

Hello there, I'm wondering if you can help me please? As of this year I am able to take amounts from my pension , so far I have taken a couple of lump sums, one a very small amount that I believe I've paid tax on and the other much larger amount is the tax free portion of a pot. In order to keep my affairs in order , I'm wondering if I need to declare it to keep my PAYE in order etc as it would swallow up the majority of my Tax free allowance for the year. If so, how do I do this and can I do it via the app? Any and all advice gratefully received.

Hi,
If the lump sum element is tax free then you do not need to declare this, pension providers will notify us automatically of any pension payments with PAYE tax deducted therefore there is nothing you need to do.
You can ensure we have received information on the taxable element of the pension payment by logging into your personal tax account.  
Personal tax account: sign in or set up
Thank you.

Thanks for the reply, doesn't this money count toward your income for the year, hence pushing you over the tax allowance with your regular salary....? Eg if you have a lump sum of 13k does that then mean all your salary is now taxable from the moment you get the sum, even if the sum is tax free in itself....I hope that makes sense.

Hi,
You can usually take up to 25% of the amount built up in any pension as a tax free lump sum.
The tax-free lump sum does not affect your personal allowance.
Tax is taken off the remaining amount before you get it.
Tax when you get a pension
Thank you.