David Corless

I need advice on completing online form P55 to reclaim tax paid in year. My wife has received 1 lump sum payment from a private pension that has been taxed that she would like to reclaim as a non taxpayer. She is not in receipt of any other pension income. The form asks ‘do you expect to receive any pension income’ and then ‘details of flexibly accessed pensions’ giving amounts and tax taken. I’m assuming she answers ‘no’ to the first question and (obviously) ‘y to the second. I was inclined initially answer y to the first question but don’t want the pension received to be double counted…

My wife is a non taxpayer as she has currently has no income but does receive interest on savings. We estimate she will receive £9000 in interest for 24/25. She also has a small SIPP and is planning to draw down £7500 in this current tax year. The combined SIPP income and savings income is less than the £17570 threshold of personal allowance plus starting rate for savings and therefore we believe no tax is payable on the interest. Is this correct? And with an annual income of £7500 what is the maximum amount of interest she can earn tax free? I understand that to be £11250 ((£18570 - £7500), the £18750 being made up of the PA + starting rate + £1000 allowance. Are my assumptions correct?