dbcbs

[grchpo]

I had large amount of dbcbs left over after funding pension. Took 25% tax free & the remainder taxed. When I ring up HMRC on Monday, because they're taxing my pension on BR code, do i tell them about dbcbs as it has already been taxed & should it be taxed as i now work p/t, not at RM, & earn less than personal allowance.
Thanks for any help

[RobertT]

They probably already know how much income you've earned so far this tax year, and you can check yourself by getting yourself a personal tax account: https://www.gov.uk/personal-tax-account

Basically any income over the Personal Tax Allowance(currently £12,570) in any financial year is taxed.

By the sound of it, so far this tax year you'll have some RM wages, RM pension, taxable DBCBS & income from the part time job?

Any over payment of tax will be refunded. Any under payment will need to be repaid by you.
A change of tax code is often used to even things out until the end of the tax year, rather than it being in one payment.

From 6th April 2024, you will presumably only have your RM pension and the part time job? In which case, less or possibly no tax, will be payable.

[mags999]

On a slightly different subject does anyone know if the dcbs lump sum is reduced if I take it at 62 instead of 65 was hoping Robert might know this

[RobertT]

On a slightly different subject does anyone know if the dcbs lump sum is reduced if I take it at 62 instead of 65 was hoping Robert might know this

The RMPP website used to say the DBCBS is reduced if NRA65 is taken early, although I can no longer find the page where that's mentioned.

Comments on here over the years, suggest it isn't reduced by much, if at all.

It's possible the website was wrong. It's also possible the rules regarding any reduction of the DBCBS have changed?

So to be honest, I'm not 100% sure.

[mags999]

Cheers Robert will just have to see what happens when I decide to take it