Your P60 statement

Your P60 statement is a summary of the annuity income we’ve paid you, and the tax that has been deducted in that tax year. It is proof of the tax you've paid, so it’s important to keep it safe.

We’ve created a short video to explain more about your P60, what it is and who to contact to find out more.

Your P60. What is it for exactly?

Your P60. What is it for exactly? video

Transcript: Your P60. What is it for exactly?

Running time: 1 mins 50 secs

Your P60…what is it for, exactly?

Which queries should you refer to Her Majesty’s Revenue and Customs? And which queries should you refer to us, at Legal & General?

First things first. A P60 is simply an official record of your income in the last financial year, the amount of tax you’ve paid and the retirement income payments you’ve received before tax. 

Your retirement income amount is listed on your P60, once these payments start, they cannot be changed, although the amount may vary.

Your retirement income is taxable. The amount of tax you pay will depend on your individual circumstances. 

Tax will only be taken if your retirement income exceeds your personal tax allowance.

Your amount of personal tax allowance is issued every year by the government. You can receive a copy of this by contacting HMRC, their details are coming up.

The amount of tax you pay is printed on your P60 form, along with your tax code. If you’re concerned that either of these are incorrect contact HMRC.

If you have more questions, you’ll need to ask the right people:

You should call Legal & General if you need to change your contact details, to ask non-tax related questions, or if you want to talk about any of our products and services. 

You should call HMRC to discuss any of the following: tax rebates, tax payments, your current tax code, or if you want to understand how additional incomes can affect your current tax position.

We hope that helped.

Will I pay tax on my pension income?

The income you receive from your pension is subject to income tax.

The income tax bands for the tax year 2018/2019 are shown below. These are set by the government and change every year. You can check the latest details or historic tax bands directly with HMRC at Income tax rates or with a financial adviser or an accountant.

If your total income from all sources adds up to more than your Personal Allowance you will have to pay tax at the rate shown below.

UK excluding Scotland

Income tax
Income tax band Tax band limits Rate of tax
Personal Allowance* Up to £11,850 0% (tax-free)
Basic rate £11,851 - £46,350 20%
Higher rate £46,351 - £150,000 40%
Additional rate Over £150,000 45%

Scotland 

Income tax
Income tax band Tax band limits Rate of tax
Personal Allowance* Up to £11,850 0% (tax-free)
Starter rate £11,851 - £13,850 19%
Basic rate £13,851 - £24,000 20%
Intermediate rate £24,001 - £44,273 21%
Higher rate £44,274 - £150,000 41%
Top rate Over £150,000 46%

*The amount you can earn in a tax year without paying tax is called your Personal Allowance. You’ll only pay tax on income over that allowance. The Personal Allowance drops by £1 for every £2 above £100,000. There is no personal allowance where income is higher than £123,700. Your Personal Allowance may be bigger if you claim Marriage Allowance or Blind Person’s Allowance. 

The Personal Allowance in Scotland assumes the individual is in receipt of the Standard UK Personal Allowance.

Tax will normally be taken off by the pension provider of your income before you receive it, and they’ll pay HMRC the tax you owe on your behalf.

We use the tax code that we receive from HMRC to work out how much tax to deduct from your pension.

Will I pay tax on all of my income?

It depends. Your taxable income will include things like:

  • the State Pension you get (either the basic State Pension or the new State Pension)
  • any Additional State Pension
  • income from a private pension (workplace or personal)
  • earnings from employment or self-employment
  • any taxable benefits you get
  • any other income, such as money from investments, property or savings.

You'll have to pay tax if your total income adds up to more than your Personal Allowance. If you're not sure whether your income should be taxable, please contact contact HMRC directly or speak to your financial adviser or an accountant.

What is my tax code?

Your tax code for the 2017/18 tax year is shown on the P60 we sent you. HMRC issues tax codes to employers and to pension providers like us to tell us how much tax to deduct from your income.

HMRC will send you details of your tax code before 6 April each year. If you haven’t received this for the 2018/19 tax year, please request a copy directly from HMRC or check online at  Check your tax online.

If you want to understand more about tax codes, including what the numbers and letters mean, please visit Tax codes.

How can I check if something is wrong?

You can check the amount of tax you're paying, your personal allowance and tax code at Check your tax online. You can also use this website to check the tax you've paid in previous tax years.

You're taking too much tax, what can I do?

We use the tax code that we receive from HMRC to work out how much tax to deduct from your annuity income.

If you think this is wrong and you’re paying too much tax, you should contact contact HMRC. There is a lot of useful information on claiming a tax refund about claiming a tax refund and adjusting your tax code.

When will I get a tax rebate?

If you're entitled to a rebate, HMRC will issue your refund directly to you, within their published When you'll get your tax refund.

Who decides what tax code should be used for my income?

HMRC tell us the tax code to use. For more information about how tax codes are calculated, please visit Tax codes.

If you think we’re using the wrong code, please contact contact HMRC. We can only use the tax code that HMRC give us, so we are unable to adjust your tax code.  

What about my State Pension, is that taxed?

Yes, your State Pension counts towards your taxable income but the government pays it to you gross. If you receive income from elsewhere such as from an employer or a private pension provider, HMRC will ask your employer or pension provider to deduct any tax you owe on your State Pension. Further information can be found on How tax on your pension is paid.

Can I cash in my annuity?

If you have a lifetime annuity, then no, you can't cash this in. If you already have a Cash-Out Retirement Plan or a Fixed Term Retirement Plan in payment, you may be able to cash it in early in certain circumstances and depending on when the plan was set up. You can find details in the Terms and Conditions and Key Features we sent you when you took out the plan.

The early cash in feature is available on some Cash-Out Retirement Plans or Fixed Term Retirement Plans. Please refer to your policy documents for more information.

What information do I need when contacting HMRC?

If you're discussing your annuity or any tax matters with contact HMRC, you'll need your National Insurance number. You may also need your PAYE reference which is likely to be 846/LEG8 or 206/RAC238 You can find your PAYE reference on your P60.

How can I update the bank information you hold for me?

If you need to update your bank account information, you’ll need to send us a copy of a bank statement or a letter from your bank that shows the new account details. The statement or letter will need to be less than three months old.

Please send the information to:

Legal & General Payment Services
PO Box 809
Cardiff
CF24 0YL

How can I contact you?

You can find the contact details for all our dedicated teams on our View - Contact us page.

How can I contact HMRC?

You can call HMRC on 0300 200 3300 or visit their HMRC website.

Frequently asked questions

More common questions and answers about pensions, tax and retirement.