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

I have just received my first state pension payment. I have been heavily taxed on one of my private pensions. Is this right? Also on my personal tax account the amount of private pensions stated is way too much - how do I get this amount changed.

I intend to work for a year or so after retirement. I will have full state pension and a small NHS Pension. Can I have all tax deducted from my salary so that the full amount of my pensions are paid in to my account. I realise that this will make no difference to the amount of tax I will owe and pay.Thank you.

I was entitled to State Pension from end September 2023 and in the tax year to 5/4/24 received payments for a 2 week period and six 4 week periods. The last receipt falling in the tax year was received on 21 March 2024. My tax charge for 23/24 has been based on an additional 2 weeks to 5 April, even though these were not actually received until 18 April. DWP have advised me that for taxable income purposs HMRC take the weekly amount and multiply by number of weeks from entitlement to 5 April and not on actual receipts. This means I have been taxed on 2 weeks of Pension which were not received. Can HMRC sort out this anomaly

I've started recieving my state pension at the end of April. I am in full employment. How do I ensure that I am paying tax on this state pension, so as to ensure I don't have to make good any underpayment later?

Hello I am getting my state pension on 12th September - but I'm still going to work full time for a year! - who do I have to inform ? TIA

Hi Gethin,
The DWP notify HMRC automatically when your State pension starts, this is usually within 7 days. HMRC will then issue an amended tax code including the State pension so tax is deducted accordingly which should reduce the chance of a tax underpayment arising. You can check your current tax code to ensure this has been updated on the personal tax account. Personal tax account: sign in or set up.
If your tax code has not been updated please contact us with the amount of State pension you are receiving so your tax code can be updated.
Income Tax: general enquiries.
Thank you.
 

Hi Peter,
Depending on the size of your NHS pension, that could be possible. Please contact us by webchat or phone via Income Tax: general enquiries to allow us to check your record and confirm that we can do that for you.
Thank you.

Hi
The DWP will notify HMRC automatically when your state pension starts, this is usually within 7 days. HMRC will then issue an amended tax code including the state pension so tax is deducted accordingly. You can check your current tax code to ensure this has been updated on the personal tax account. Personal tax account: sign in or set up  

Hi Pamela,
The state pension is paid gross by the DWP, it is still a taxable source of income.
To compensate for this, we add the State Pension to the tax code as a deduction to collect the tax due through a PAYE source.
You can change your estimated income on the Personal Tax Account. 
Thank you.

Hi HJM,
If the amount of state pension in your code is incorrect, we can amend this.
Contact us by webchat or phone:
Income Tax: general enquiries
Thank you.
 

I will start to receive my first payment of state pension on 02 October 2024 which is part way through the current tax year. My current taxable allowance/tax code is S1383M and this has been used 100% in relation to my works pension. I have now been informed that my new tax code will be reduced to S418MX , which is taking into account my full state pension allowance to calculate this new code, even though I will only earn about 7 months of state pension payments. Does this mean that I will now be paying more tax using this emergency code for the next seven months until the end of the tax year (2025) and will it be deducted solely from my works pension? If so, will I receive a tax rebate?

I retired from my job in August 2024. I had submitted all necessary documents for the state pension. I have received a letter confirming that I am eligible for 1. State Pension 2. Additional State Pension 3. I can have a lump sum amount of if I accept to forego my Additional State Pension. I have retired from NHS and have a small NHS Pension also. I have been trying to enquire from HMRC (and DWP also) whether the lump sum I receive will be taxable or not (and how much tax will be due if lump sum will be taxed) I have talked to more than 8 advisors in HMRC. But no one has provided me any information which provides an accurate clarification regarding the above? It would be greatly appreciated if anyone can provide any insight and let me know if the lump sum will be taxable or not? And if the lump sum will be taxed, how much is it likely to be taxed i.e. which tax bracket is it likely to fall under?

Hi Archie,
Althought the full state pension has been applied to your code, you will not be paying the full tax due on it as the code is on a X basis, this means that it wil only tax you for the next 7 months at that rate, not the full 12 months, so if for example your yearly state pension is say 12000(1000 calender month) tax due on this at 20% was total £2400, but as it only starts in Oct, we would op at S570X code (12570-12000) on the Xbasis, in October this will take a extra 200 in tax ( 1000@20%) only and every month going forward, so by the end of March we will have collected and extra £1200 in tax only, not the full £2400.
Thank you.

In March 2025 I will be 66 and have elected to receive my state pension. I am employed have decided to continue working part time. I will also start to receive income from a private pension. So I will have three sources of income, all paid monthly: (1) Paid employment (2) Private pension (3) State pension Obviously I can only have one tax code so how will this be calculated and how do I make sure that my employer and my pension provider get it right? I want to try to avoid the "ridiculously wrong emergency tax code" situation.

State Pension is taxable, but tax is not deducted at source. We will adjust your tax code at your main source of income to collect the tax due on this.
The DWP will notify us automatically within 7 days of your State Pension starting so your tax code can be reviewed.
Your private pension will have a separate tax code to your employment and this tax code will be dependant on your estimated annual income. You can see guidance here: 
Income Tax rates and Personal Allowances
Thank you.

Hi I am due to retire on 31st of January and at present I have 2 company pensions a private pension and will be getting my state pension in January. With these and my pay from my employer my 3 pensions are being taxed at 42%. My last company pay is on 30th January, my question is in Febuary will my tax rates for my 3 pensions resort back to 21% and my new pension be taxed at 21%

Hi,
You should contact our Income Tax team, to ensure that the correct tax codes are being applied to your employment and pensions.
Income Tax: general enquiries
Thank you.

Do I pay tax on SERPs? If yes how is this done? Is any of 25% tax free?

Hi,
SERPs, or Additional State Pension, is paid on top of your regular State Pension. Both are taxable income, if the total amount of the two exceeds your Personal Allowance, tax will be due on the excess.
You may be able to withdraw 25% of your total State Pension and Additonal State Pension tax free, for advice,  p;ease contact the Pension Service:
Contact the Pension Service
You can see guidance on SERPs here:
Additional State Pension
Thank you.