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Posted Thu, 07 Nov 2024 10:54:34 GMT by bobbybox99
Hi. I take a regular (taxable) pension income from my SIPP of £2000 each month (gross). My tax code is 1257L. Question 1: If I decide to take a one-off increased income of £10,000 for just the month of March 2025 (tax month 12) and then return to taking £2,000 from April 2025 (tax month 1) will I receive £8000 net in March with tax correct as month 12? Also, from tax month 1 2025 (April) will HMRC assume I'm going to be taking £10,000 every month because I took this amount in March 2025 - even though I will instruct my SIPP provider to revert to £2,000 a month payments? I'm not sure how this works across tax years... Thanks for your help!
Posted Wed, 13 Nov 2024 17:35:17 GMT by HMRC Admin 20 Response
Hi,
As long as your tax code is been operated on a cumulative basis you should pay the correct amount of tax on your one off pension payment in March.
This one off larger payment may result in your estimated income for the following tax year been incorrect however you can review & update this on the personal tax account. 
Personal tax account: sign in or set up
Thank you.

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