Tax on Pension

Hi I've just reached retirement age and have a small monthly pension of £340, the State Pension of £10,600 and Savings Interest of £9600 per annun. Prior to retiring I had earnings of £6500 and paid tax of £175 through PAYE. I understand that tax will be deducted from my pension, which I calculate to be about £110 a month, will this amount be taken from my pension each month?

Hi Tina Wylde,

Yes any tax due will be deducted from your personal pension. 

Thank you.

Hi I've received a new Tax Code today of K264X, as I have savings interest, my annual tax-free amount is −£2,651. Please could you advise how much more than £110 will be deducted each month? I only have a monthly pension of £340, is there a limit to how much tax can be deducted or could it all be taken? Kind regards

Hi Tina Wylde,
If your pension is £340 a month the tax code K264X would deduct £112 a month.
The most tax that can be deducted is 50% of the income the code is operated against. 
Please this guidance:
If your tax code has a ‘K’ at the beginning
Thank you.