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Reclaiming tax from last year - is it possible?
Posted: February 22nd, 2022, 11:13 am
by zico
By mistake, I took too much from my pension pot in 2020/21, which pushed me into the 40% tax bracket. Can I do anything about this now, or is it too late?
Specifically, if my income was (say) £10k over the 40% tax threshold in 2020/21, can I decide to take £10k less income in 2021/22 and ask HMRC to take the average of the 2 years.
Re: Reclaiming tax from last year - is it possible?
Posted: February 22nd, 2022, 1:38 pm
by Charlottesquare
zico wrote:By mistake, I took too much from my pension pot in 2020/21, which pushed me into the 40% tax bracket. Can I do anything about this now, or is it too late?
Specifically, if my income was (say) £10k over the 40% tax threshold in 2020/21, can I decide to take £10k less income in 2021/22 and ask HMRC to take the average of the 2 years.
Are you a farmer or an author? There are odd occupations where profit averaging is possible but afraid pensioners drawing pensions is not one of them.
Re: Reclaiming tax from last year - is it possible?
Posted: February 22nd, 2022, 2:05 pm
by zico
Charlottesquare wrote:zico wrote:By mistake, I took too much from my pension pot in 2020/21, which pushed me into the 40% tax bracket. Can I do anything about this now, or is it too late?
Specifically, if my income was (say) £10k over the 40% tax threshold in 2020/21, can I decide to take £10k less income in 2021/22 and ask HMRC to take the average of the 2 years.
Are you a farmer or an author? There are odd occupations where profit averaging is possible but afraid pensioners drawing pensions is not one of them.
Neither, into (at least for tax purposes).