Tempting as it is for your clients to take their pension fund as cash, beware the sting in the tail – while they can normally take a 25% tax-free lump sum, remember they’ll pay tax on the rest (at a rate linked to all income received in that year).
Our calculator shows them the amount and percentage rate of income tax payable on their pension fund if it is withdrawn in addition to other taxable income.
Please enter figures without commas i.e. 54000
Information provided on this calculator is for illustrative purposes only
- Figures based on income tax limits for tax year 2020/21
- No allowance made for blind person or married persons allowance
- The calculator assumes that 25% tax-free cash has been taken
- Information provided on this calculator is for illustrative purposes only. Do not make any major financial decisions without consulting a qualified specialist such as an accountant or financial adviser.
This calculator uses UK income tax calculations – excluding Scotland