Final salary and state pension tax

ericthesanddune

I’ve just received my first state pension payment, I also receive a final salary pension… I was under the impression that I would get less FSP due to paying more tax on it to compensate for the increase in income.. (this was told to me when I rang the Final Salary provider) however I paid the normal tax amount that I usually do.. are there any others on here with both pensions that can give me the benefit of their experience with regards to tax  

Dazed_and_C0nfused

ericthesanddune said:

I’ve just received my first state pension payment, I also receive a final salary pension… I was under the impression that I would get less FSP due to paying more tax on it to compensate for the increase in income.. (this was told to me when I rang the Final Salary provider) however I paid the normal tax amount that I usually do.. are there any others on here with both pensions that can give me the benefit of their experience with regards to tax  

HMRC don't include the State Pension in your tax code until it starts being paid so there is usually a slight delay until the new tax code is issued and you notice a reduction in your FS take home pay amount.

One or two posters have reported longer delays but that was a few months ago so you should find a new tax code is issued later this month.

And if you are already paying tax HMRC will include the full annual amount of State Pension in your tax code but they'll tell the FS payer to operate it on a non cumulative basis so you just pay the correct amount each month going forward.

ericthesanddune

Thank you for replying D&C it’s appreciated