Tax
Tax codes
Your tax code is decided by HMRC. It is used to determine how much income tax you pay on your pension.
- If you have paid tax on your pension, the tax code will be on your most recent pension payslip
- If you think we have the wrong code, then please contact HMRC. You will need your National Insurance number and tax reference which will be on your pension payslip
You do not need to tell us if you receive a new tax code.
- We are not allowed to change the tax code for your pension until notified by HMRC, which may be a little after HMRC contacted you about it
- We will send you a payslip if the pension we pay to you each month changes by more than a pound because of a new tax code
Please contact HMRC if you have a question about your tax code. You will need your National Insurance number and PAYE reference which is on your payslip.
Lifetime allowance
The lifetime allowance (LTA) is set by HM Revenue and Customs. The capital value of all of a person's pension rights are tested against the LTA each time they take pension benefits. If the total of all your pensions is more than the LTA (or any lifetime allowance protection) extra tax will be due on the excess.
The lifetime allowance does not include state retirement pension, state pension credit, spouse's, civil partner's or dependant's pensions.
