Paying tax on your pension
Pension recently brought into payment
If you are a new pensioner we may have to apply a temporary tax code to your pension until we have been notified by His Majesty's Revenue and Customs (HMRC) of your correct code as we do not know the income level you may have from other sources. This avoids the likelihood of a large tax bill being issued at the end of the financial year.
If the temporary tax code results in an overpayment of tax we will refund you when we apply the correct code.
The Pension Fund can only refund overpaid tax within the same tax year. Overpayments relating to previous tax years will come from HMRC.
Only HMRC can instruct us which tax code to apply to your payments.