Tax

 Your pension is subject to income tax.

Many of our pensioners find that the tax payable on their State Pension is deducted from the pension they receive from us, and the State Pension is paid to them without any tax deducted.  This can be confusing but is normal.  It is also normal to find that HMRC issue several changes of tax coding in the early months when you are starting to draw a pension.  You do not need to tell us about any changes in your tax coding, as HMRC will also send us notification of these changes.

Each year you will be sent a P60. This will show you the amount of gross pension you received and tax deducted for the Tax Year.  The tax year begins on the 6th of April and finishes on the 5th of April the following year.