Tax query P60 Tax free lump sum
Tax Planning and Financial

PJ
PJ
134 Thanks
482 Posts
1 year ago
0

I have just received P60 from a small pension.
I did receive 25% Tax free lump sum which is included in P60 Total but not indicated as Tax free sum.
For example below , small Pension worth 20K received 25% tax free ( 5 K )

Also receive monthly payments worth £ 1000 which I agree is classed as taxable income ( over personal allowance )

P60 Just states £ 6K last tax year, I did receive 6K but 5K Tax free, how is this entered on my self assessment Tax return form ?

I assume I can just enter details of Pension income £ 1K as taxable income and any tax deducted.

Do I need to add some notes / indicate P60 states £ 6K received noting 5K is a tax free lump sum.

I am reluctant to enter the P60 full amount 6K as income received as I believe this will be calculated as taxable income without deducting 5K Tax free lump sum, is there something I am missing as I can't find anywhere to enter Tax free lump sum.

Pension provider paperwork states: By law, you are required to tell HMRC about any income that is not fully taxed, even if you are not sent a request to complete a Self Assessment Tax Return.

It's not often any of us receives Tax free lump sums on a regular basis hence the query, thank you.

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