Tax when Multiple Pensions in Payment

bonnyrigger

I have a DC pot, a DB pension payable from 67 and a SP age of 67. Current plan is to retire at 6x and draw ~ £22k/yr CPI index linked from DC pot per year for x years until 67, then to reduce this keeping the same overall income by receiving SP and DB (also CPI linked).
For the first x years I understand that the DC pension provider receives the PAYE tax coding notice & deducts the appropriate tax (I plan to ask for monthly payments to keep it like a salary).
My question is what happens when the DB pension and SP kick in and the DC drawdown then becomes the smallest of the 3? Who calculates and deducts the correct tax for the overall income, the DB provider? How do you inform them about the DC amount?
Sorry if this has been asked before.

xylophone

My question is what happens when the DB pension and SP kick in and the DC drawdown then becomes the smallest of the 3? Who calculates and deducts the correct tax for the overall income, the DB provider? How do you inform them about the DC amount?
Sorry if this has been asked before.

DWP usually contact HMRC when your SP comes into payment and your DB pension provider should also be contacted - however, sometimes things get out of kilter.

It is probably wise to contact HMRC and ask for the tax codes to be adjusted if you can see that is the case.

https://www.litrg.org.uk/tax-guides/pensioners/tax-code-problems-retirement

Have you set up a Personal Tax Account?

https://www.gov.uk/personal-tax-account

Linton

HMRC reduce your tax allowance by the value of the SP and allocate the remaining allowance through separate tax codes issued to the other pension providers. You can see and (IIRC) change the allocation via your tax account.


By default when issuing tax codes in the new tax year HMRC seem to assume that your pensions increase with inflation. This can lead cause problems, especially if you drawdown variable amounts.

bonnyrigger

Thanks to both who replied, I didn't know about the personal tax account.