What is a P50Z?

Form P50Z is for reclaiming tax paid on a ‘drawdown’ pension payment, under certain circumstances.

Previously, an initial pension withdrawal was taxed at an emergency code 1 rate and you had to wait to reclaim this substantial amount until the following tax year.

The P50Z form is designed to make this process easier and shorter meaning your money should be returned within 30 working days of HMRC receiving your form.

Who should use form P50Z?

It is for retired taxpayers who meet all of the following criteria:

  • Taken a cash lump sum from their pension;
  • Emptied their pension pot with this ‘flexibility payment’; and
  • Received a P45 from their pension provider.

If you still have other taxable income you should see form P53Z.

P53Z criteria

If you meet the three criteria above and at least one of the following:

  • You have retired for good without a pension from your last employer.
  • You are studying full time.
  • You are not claiming any taxable benefits (Employment and Support Allowance, taxable Incapacity Benefit, Jobseeker’s Allowance).
  • You have been unemployed for more than 4 weeks.
  • You do not intend to return to work.

When should you not use a P50Z?

You do not need to fill in this form if you meet one, or more, of the following criteria:

  • You are claiming taxable benefits.
  • Your ‘flexible’ payment has left some money in your pension pot.
  • You are not a UK resident for tax purposes.
  • You are starting a new job within 4 weeks.
  • You receive an occupational pension, your pension provider will make the repayment or you can reclaim directly from HMRC after 5th April.

There is likely to be another tax form that is applicable to your specific situation if you don’t meet all these criteria.

How to submit the P50Z

You have three options for getting your P50Z to HMRC.

  1. Firstly, through your GOV.UK personal tax account. They take about 15 minutes to set up.
  2. Secondly, you can fill in the form on your computer, then print it and post it to HMRC.
  3. Thirdly, you can just print off the form, complete it by hand and then pop it in the post.
  4. If you need to speak to someone you can phone HMRC on 0300 200 3300.

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