Tax and pensions

No, state pension is not taxed at source. Your tax code will be adjusted accordingly so there's not need to complete any tax forms. DWP inform HMRC that you are drawing your state pension and HMRC write to you to inform of the adjusted tax code.

The state pension is taxable income, but you normally receive it gross. This means no tax is deducted at source (that is, before it is paid to you) from the state pension.

If your only source of taxable income is your State Retirement Pension, you have to fill in an annual tax return if the amount you receive is higher than your tax-free personal allowances.

Hope this helps.

If you carry on working all the tax with be deducted from your NHS salary and pension. Be careful to check that your tax is correct, especially when you finally give up work. When I retired from the NHS, they did not tell the Tax Office so I paid tax as if I was still working for quite a while.

I’ve just got my new code for next financial year.

The sate pension is deducted from my allowance and the remaining allowance is applied to my work pension and then I pay tax on that.

It means you seem to pay quite a lot of tax proportionately on the work pension? but the state pension is paid with no deductions so it’s swings and roundabouts.

I don’t have to fill anything in, but I do check it using the website.

Thank you for your kind replies and for taking the trouble to comment. I am sure it will all be fine; it was when I semi retired, though I did have to have a conversation with the tax office at one point as they were taxing the whole lot without the personal allowance. I got it back though.

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I have the same as you. NHS pension, Work part time still in NHS and received my State pension. Taxed on Pay and NHS pension at source but not state pension.
However you will not pay NI on your pay.
Keep an eye on the Tax and contact them for advise if you think its wrong.
Good luck

I have a state pension and two small pensions which when all added up just take me over into paying tax. So my tax is deducted from just one of my private pension but make sure you check your tax code.

The State Pension is paid gross, but deducted from your tax free allowance and your Code is adjusted, so your occupational pension is taxed to include your state pension, effectively.
I have another pension as well, which is taxed at Basic Rate, as my allowance has been used elsewhere.