ESA, State Pension and HMRC personal tax account.

anotherquestion Forumite Posts: 337
Third Anniversary 100 Posts
Hi folks,

Would like some quick advice on this please.

1 Just started receiving my State Pension, Will Hmrc get notification of this and adjust tax code accordingly, or can I add state pension to personal tax account online?

2 Previous to getting State Pension I received ESA (employment and support allowance that is taxable) This shows on my online person tax account on how my Paye code is made up, but is estimated about £1100 more than I actually would have got for full 23-24 year (if state pension hadn't kicked in) The reason for that is probably HMRC calculated that I would have got the annual benefits rise, which I wouldn't be entitled to anyways under my personal circumstances ESA rules, it other words ESA has stayed the same year in year out for several years now.

When I was sent tax codes in for current tax year (in february of this year I believe) I was happy enough to let it stay that way, as State pension is more money than ESA and it will all sort of balance itself out by April 24.

I may have one small payment of ESA to get this week which brings me up to the date of State pension beginning.

There is an option to remove ESA from the online personal tax account, but I am not sure whether to do this or not, so as not to complicate the tax code that may be sent to me,

Any advice sought on best way to manage this.
Many thanks.


  • Hoenir
    Hoenir Forumite Posts: 262
    100 Posts Name Dropper

    1 Just started receiving my State Pension, Will Hmrc get notification of this and adjust tax code accordingly, 
    Yes they will. No action required. 
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