Will my tax free pension lump sum be paid out "tax free" to me?

Discussion in 'Pensions' started by Laramie, Jan 23, 2017.

  1. Laramie

    Laramie Frequent Poster

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    274
    I am due to start a deferred pension next month. I have not worked for some years. I contacted the Revenue Commissioners for an updated certificate of tax credits.

    This arrived showing "nil" tax credits. Is this normal. Should I have not been allocated the basic credits that everyone receives?

    I am due to receive a tax free lump sum from my pension. Is this normally paid by my pension provider "tax free" or will it be subject to emergency tax that I will have to claim back?
     
  2. Gordon Gekko

    Gordon Gekko Frequent Poster

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    1,763
    No, it'll be tax free assuming you haven't already breached the €200k tax-free lump sum threshold.
     
  3. Laramie

    Laramie Frequent Poster

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    274
    Thanks for that. I'm still wondering why the Revenue sent me my tax credits as "nil". Does everybody not get the basic tax credit allowances?
    They know that I am due to commence receiving a pension next month?
     
  4. GerardPROactive

    GerardPROactive Registered User

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    30
    Hi Laramie, have you told Revenue yourself that you will be receiving a pension going forward? You will need to provide them with the pension provider's tax reference number and you should then be registered as an employee of the providers.
     
  5. Laramie

    Laramie Frequent Poster

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    274
    Yes. I gave them the provider's name and tax reference number. Maybe they are waiting until it starts getting paid, next month?
     
  6. GerardPROactive

    GerardPROactive Registered User

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    30
    I would follow up with Revenue just in case. I have seen mistakes made with this kind of thing before.