Tax Free Income - Where to enter a tax free income source

Q - Where do I enter tax free (net) income into the software? 

- There are two ways you could enter recurring tax free income. 

- On the Other Income screen, setting income to Tax Free. 

- If you want to track the income as coming  from an asset, enter it on the Investments screen under Type, Offshore Taxable. Set the Tax Rate to 0%. You could then go to Advanced Settings, select the Withdrawal Limit / Draw Down Strategy panel, select Draw Down and set an annual planned withdrawal (draw down) from this account. 


Other forms of tax free income

Withdrawals, scheduled or ad hoc, from an ISA will be tax free. 

Tax free cash payouts from the crystallisation of a money purchase would be scheduled on the Pensions > Money Purchase screen. Enter details of the uncrystallised funds and under Withdrawals & Annuity, schedule the crystallisation or annuitisation of the pension along with tax free lump sum withdrawals. Tax free withdrawals are usually capped at a maximum of 25% of the total fund value. 

Lump sum payouts from final salary schemes can be scheduled on the Pensions > Final Salary screen, under Advanced Settings, on the Lump Sum Options panel.