Pensions and tax
Do I pay tax on my pension contributions?
Do I pay tax on the pension I receive?
Initially when we set up your pension payment HMRC require us to put you on 0T tax code, which means that tax will be deducted at 20%.
We advise the Tax Office that your pension has started and in turn they advise us of the correct tax code for you, taking into account your personal tax position.
What is the annual tax allowance?
The Annual Allowance (AA) is the amount by which the value of your pension benefits may increase in any one year without you having to pay a tax charge. This is in addition to any income tax you pay on your pension once it's in payment.
What is the lifetime tax allowance?
Pensioner's Employers Tax Reference
This is the Authority’s tax reference for all pensioners, and you should quote it on all correspondence with HMRC (Tax Office).
If you are not yet in receiving your pension you will need to refer to your employer for their tax reference.