Tax
Paying tax
Your pension and any annual compensation you receive will be taxed as earned income. Tax will be taken off by our payroll section as Pay As You Earn (PAYE).
Who to contact
Your tax code : HMRC Centre 1 may sent you a notification of a tax code change. Contact HMRC on 0845 3000 627 for assistance. The Fund can't help with tax code notices.Deductions of tax : Contact the Fund's Payroll Section on 0131 529 4753 or 0131 469 3276
How much tax will I pay when I retire?
When you retire your P45 form is sent direct to our Payroll Section by your employer. Your pension will be taxed initially using the tax code on your P45, on what is known as a 'Month 1 / Week 1 basis'.
This is used until HMRC issues you a Notice of Coding and should arrive shortly after you retirement.Changes to your tax code will be shown on your monthly pension payslip.Pension Payroll will notify the HMRC of your retirement and you should receive an Income Tax Return from them for completion.
Taking a new job
You must tell a new employer that you are receiving a pension and let them have the address of the City of Edinburgh Council's tax district, which is given below.Tax Office
HM Inspector of Taxes
Centre 1
East Kilbride
Glasgow G79 1AA
Telephone: 0845 070 3703
If your new employer is also a member of the Local Government Pension Scheme and you retired on the grounds of redundancy or interest of efficiency you must let speak to us to let us know. Your current pension may be reduced - find out more in our re-employment section.
Pension reference number / PAYE reference number
If you are asked for your pension reference number, this can be found on your pay advice slip shown as "employee number". If you are asked for Lothian Pension Fund's PAYE reference, the number you need to quote is 961 2406394. If you are a firefighter, the PAYE reference you need to quote is 961 2494390.
