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Occupational Pension plus State Benefits (not pension)

I have recently retired on ill-health grounds.  Small pension £8700 and recently claimed ESA (due to ongoing ill-health and being of working age).  Given I have been receiving a salary for most of 20/21 tax year, and the recently begun ESA, I have exceeded the £12.5k threshold.

My question is for the remainder of 20/21 do I have to contact HMRC to request self-assessment or will DWP notify my pension provider/HMRC of the monies being paid to me to allow my tax code to be adjusted accordingly?  I have repeatedly tried to contact pension provider but either the lines are constantly busy due to reduced Covid service or it's a recorded message directing callers to the website where I cannot find an answer to my question. 

For 21/22 this will not apply as the combined pension and ESA (assuming it continues after assessment) will not exceed the £12.5k tax threshold.  

Any guidance would be appreciated.

Comments

  • Did you send your form P45 to your pension provider? On the ESA, I wouldn’t depend on the two departments talking to each other - can you go on your online account and enter this additional ESA income.
  • CosmoChic
    CosmoChic Posts: 96 Forumite
    Seventh Anniversary 10 Posts Name Dropper
    edited 22 January 2024 at 3:51PM
    @[Deleted User] thanks for replying.  Yes, my P45 was sent to pension provider.   I've just logged on to Gov.UK - having been PAYE until Nov 2020, I've never used it before.  Surprisingly, it appears DWP and HMRC have communicated effectively and the ESA income is recorded!  

    I'm guessing/hoping 21/22 will be much more straightforward given my income won't breach the £12.5k.

    Thanks for you help.  :) 

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