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Archie Shields

Archie Shields

Joined: 9/10/2024

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

    Tue, 10 Sep 2024 15:54:06 GMT – Tax on state pension and work pensions in the first year of retirement
    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?