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Hi
I am writing on behalf of my friend. He has recently cashed in his pension. He received just over £60,000, (I`m not sure of the exact amount), he has just received notification of the tax the firm have deducted.
They have stated that £50,508.00 was taxable, and £21,107.25 has been deducted in tax. My friend has been on Jobseekers allowance for the last 8 years, which has brought him in just over £3,000 per year and this year it has been only £1300.00 as he has now signed off Jobseekers allowance.
My question is this, as my friend hasn`t earned anywhere near the tax free allowance this year or for the 8 years previous, isn`t £21,107.25 an awful lot of tax to have been deducted from his pension lump sum for one under these circumstances?
Thank you for any advice.
I am writing on behalf of my friend. He has recently cashed in his pension. He received just over £60,000, (I`m not sure of the exact amount), he has just received notification of the tax the firm have deducted.
They have stated that £50,508.00 was taxable, and £21,107.25 has been deducted in tax. My friend has been on Jobseekers allowance for the last 8 years, which has brought him in just over £3,000 per year and this year it has been only £1300.00 as he has now signed off Jobseekers allowance.
My question is this, as my friend hasn`t earned anywhere near the tax free allowance this year or for the 8 years previous, isn`t £21,107.25 an awful lot of tax to have been deducted from his pension lump sum for one under these circumstances?
Thank you for any advice.
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