Your pension is treated as earned income and is taxed under the Pay As You Earn (PAYE) system. This means that if your pension is more than your personal allowance you will pay income tax on it at the rates in force at the time, in the same way as you paid tax when you were working. You can find out what the current tax and personal allowance rates are by referring to HM Revenue & Customs’ website.
Whether you pay tax on your retirement pension will depend on your personal circumstances. HM Revenue & Customs (the tax people) require us to deduct tax from your pension at the basic rate (currently 20%) until our payroll department receives your revised tax code.
Once you’ve started to receive your pension, you can contact the tax office to follow up the issue of your new tax code. You can find contact details below.
HM Revenue & Customs notifies both you and the Company of the tax code that applies to you for each new tax year. This may be different from the tax code shown on your last P60 statement.
If you have any tax queries please contact:
HM Revenue & Customs
Pay As You Earn
PO Box 1970
Liverpool, L75 1WX
Telephone: 0300 200 3300
8.00 am to 8.00 pm Monday to Friday
8.00 am to 4.00 pm Saturday
If you are hearing or speech impaired call 0845 302 1408.
If you’re phoning from abroad call +44 135 535 9022.
You will need to quote your National Insurance number and PAYE reference O83/BW5.