The basics

  • If your total taxable income is more than £12,500 you will have to pay tax.
  • As well as paying tax on your pension income, you’ll also pay tax on any other income.
  • There are exceptions. Some sources of income aren’t taxable. ISAs, for example.
  • Your State Pension counts towards your taxable income but the government pays it to you before tax is deducted and asks your employer or private pension provider to deduct any tax you owe on your State Pension.
  • If you think you’re paying too much tax, please contact HMRC and they can take a look at changing this for you.

How can the HMRC help?

  • If you’re contacting HMRC you’ll need your National Insurance number. You may also need your PAYE reference which you can find on your P60.
  • You can call them on 0300 200 3300 or visit the website.
  • You can check the amount of tax you’re paying and your tax code at GOV.UK.
  • When you first receive your pension sometimes a tax code isn’t issued in time and an emergency tax code is used. This means you pay more tax than you should. It’s usually corrected, but there’s information about claiming a tax refund at GOV.UK.

For more information about tax codes and how they’re calculated visit GOV.UK.

Next steps

Want to know more about tax in retirement? Read about:

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Need help?

Wherever you are on your retirement journey, there’s help at hand.

Contact HMRC

Contact HMRC If you need to contact HMRC you can call them on 0300 200 3300 or visit the website.

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