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Posted Fri, 21 Jun 2024 10:14:17 GMT by SARAH JULIA RYAN
Hello. In December 2023 I recieved a lump sum from my local govt pension but tax was not deducted. I have put some money aside to pay the taxes due. How do I pay? I thought I could simply do a self-assessment tax return, but that would tax me on 100% of the lump sum, not tax me on just 75% of the lump sum, which I believe it should be. Also, a self assessment tax return then expects me to pay tax in advance for next year, but I will not be getting another lump sum. I am not being taxed on my monthly pension payments either. However, other employment is being taxed through PAYE. Any suggestions, please? Thank you.
Posted Wed, 10 Jul 2024 11:08:39 GMT by HMRC Admin 8 Response
Hi,
Theanswer to this question may be different depending on a few factors:
1) depending on if you are UK resident
2} depending on if the pension income mentioned is an occupational pension which is paid by the local government or actually a state pension.
 Depending on why no tax was taken at source for example was the amount taken within the 25% tax free element of the pension, and therefore tax may not be due.
In order for HMRC to give the best advice it may be beneficial to be able to see your tax records and establish the full facts:
Taking higher tax-free lump sums with protected allowances
Thankyou.

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