Tax and Tax Codes

Your LGPS pension counts as taxable income, and income tax is deducted before it is paid to you.

How tax is applied:

  • LPF applies the tax code provided by HM Revenue & Customs (HMRC)
  • We cannot alter your tax code or explain how it has been set – only HMRC can do this
  • If you think your tax code is wrong, contact HMRC directly on 0300 200 3300 or visit www.gov.uk/incometax.

You will need:

  • Your National Insurance number
  • LPF’s PAYE reference: 961 2406394
  • LPF’s Pension Scheme Tax Reference: 00816815RX

It is common for your tax code to change during retirement, and these might happen:

April/May each year
When you start receiving your State Pension

When your LGPS pension increases in line with CPI, your taxable income also rises. HMRC may adjust your tax code accordingly.

The State Pension itself is taxable, but it is paid without tax deducted. HMRC will usually use more of your tax-free allowance against the State Pension, meaning less allowance for your LGPS pension and therefore more tax deducted from it.

 

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