Tax on state pension and work pensions in the first year of retirement

I have paid way too much tax and am rather confused by hmrc. When you start to collect state pension mid year, hmrc set tax codes to claw back money from your primary work pension. I understand the reason but not why they presumed to take way more tax than needed so that I will have paid 27.5 pence in the pound on my taxable income at the end of the tax year. It seems like they make an assumption you receive an amount of state pension equal to the whole of your annual state pension award in the current tax year even though you are getting paid the state pension for only a proportion of the first tax year in which you receive it. The problem I have is that I am not confident that at the end of the tax year they will have the knowledge of the actual state pension I actually received from the DWP in the first tax year which is less than the award because I only got it for a part of the tax year.

Hi,

When we perform the end of year calculation the system will take into account the weekly rate and the start date to determine your entitlement for the tax year. This will be taken into account in your calculation. The tax code is used on an emergency basis, which means it only takes into account 1/12 of the yearly State Pension amount each month the new tax code is applied.

Thank you.

Hi My State pension started after the start of this tax year but I am being taxed as if getting it from April 6th. So I am overpaying tax on the approximate 7 weeks of pension I am not getting as the tax code given assume I have a full year. What is more concerning is that My tax estimate on my HMRC account is showing the correct lower amount of income. So why am I being overtaxed and having to wait until June/July the following year 2024 to get my £285 back? I could understand it more if the estimate and actual calculation agreed but they do not. So if someone has a birthday say in February are they going to be taxed on a full state pension year? That would be an enormous over billing? Please can anyone explain if I can get my £285 overpayment reversed during the current tax year?

Hi
The full years amount of State Pension is entered into the tax code however it will only be used on the emergency basis, meaning that you will only pay tax on 1/12 of the State Pension each month.
It will not backdate to collect an amount that was before your entitlement started.
Thankyou.