EMERGENCY PAYE TAX CODE TO BE APPLIED TO CERTAIN PENSION WITHDRAWALS

The new flexible pension rules came into force from 6 April 2015 for those aged 55 or over with money purchase pension schemes. As announced by the Chancellor in last year’s Budget, these individuals will be able to withdraw as much as they wish from their pension fund but will be taxed on the amount withdrawn at their marginal tax rate. In some cases, the pension fund administrator will apply an emergency PAYE tax code to the payment on a month 1 basis which may result in more tax being deducted than the amount eventually due. This can either be reclaimed at the end of the tax year or during the year if you complete the appropriate HMRC form. Note that we can advise you of the tax implications of the amounts that you are considering to withdraw from your pension fund and, where necessary, assist you in reclaiming any excess PAYE deducted.

TAX DIARY OF MAIN EVENTS FOR JUNE/JULY 2015

 

Date What’s Due
1 June Corporation tax for year to 31/8/14
19 June PAYE & NIC deductions, and CIS return and tax, for month to 5/6/15 (due 22 June if you pay electronically)
1 July Corporation tax for year to 30/9/14
6 July Forms P11D and P11D(b) for 2014/15 tax year, and where appropriate form P9D
19 July PAYE & NIC deductions, and CIS return and tax, for month to 5/6/15 (due 22 June if you pay electronically); payment of Class 1A NICs for 2014/15 (22 July if you pay electronically)