HMRC has published guidance in its Pension Schemes Newsletter 67 on operating PAYE in relation to payments from pension schemes under the post-6 April 2015 tax regime.


In some circumstances, the scheme administrator may need to deduct tax from a one off payment as if the payment were the first in a series of monthly payments. Although a member will ultimately be able to reclaim any overpaid tax, the operation of the PAYE system could lead to members initially receiving much lower net amounts than they are expecting if they take a large one off payment. Trustees will need to take care over their member communications on this issue.

Read the full guidance

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