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Posted Sat, 22 Apr 2023 13:48:27 GMT by muffin321
I have received some lump sums from my pension pot and the remainder will be paid to me as a regular monthly pension. I am declaring the taxable portion of the lump sums (75%) on my self assessment form. How do HMRC know that these are one off payments and will not be received in coming years. I am concerned they may work out my new tax code assuming I will have this type of income next year. Also, the monthly payments have been received for only the last 3 months of the tax year. Do I include these in the total pension received for the year and how do hmrc know I will be receiving them every month. I do not have a computer which makes things more difficult. A relative is posting this on the forum for me.
Posted Thu, 27 Apr 2023 13:52:04 GMT by HMRC Admin 32

The pension company will have advised HMRC of the monthly payments received and you will already have a tax code against this source of income. You will declare all taxable income in your tax return for the year and the lump sum wont be taken into account for working our your tax code for the current tax year.

Thank you.

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