Tax after State Pension starts.

fly-catchers

Had my first initial State Pension this month that covered 17 days. As they have adjusted my tax code to allow about £166 personal allowance off my company pension. So the amount of tax was as if I had received the full State Pension. When would this overpayment of just over £100 be returned?

MattMattMattUK

fly-catchers said:

Had my first initial State Pension this month that covered 17 days. As they have adjusted my tax code to allow about £166 personal allowance off my company pension. So the amount of tax was as if I had received the full State Pension. When would this overpayment of just over £100 be returned?

Do you have any other sources of income and have you earned anything in this tax year? If so then how much?

molerat

What have they changed your tax code from and to, including any suffix letters ? And which pay date has that taken effect from ?

fly-catchers

I have two DB pensions. The smaller one has been fully taxed tax code BR. The whole of the personal allowance was until late January 1247L applied to my other bigger pension. From my birthday the tax code for my bigger pension changed to 199LX. In early February I got my first State Pension of £493. But the tax taken from my bigger DB pension was what I worked out to be if I had received a full state pension that month of £813. I have no other income coming in.

molerat

Your tax code has been reduced from 1257 to 199 on a non cumulative basis.  That will deduct tax on an extra £881 per month, £1763 over Feb and Mar. This is equivalent to just under 9 weeks pension at £203.85 which looks about correct.

xylophone

Assuming that you remain a basic rate taxpayer, and that PA is not increased in the Budget, you are likely to find that from the new tax year, the code on your larger DB pension will be based on  £12,570 - your annual state pension 2024/5.

fly-catchers

Thanks. The new tax code for 24/25 is showing as 111L for the bigger DB pension and the smaller one remaining as BR.

Dazed_and_C0nfused

fly-catchers said:

Thanks. The new tax code for 24/25 is showing as 111L for the bigger DB pension and the smaller one remaining as BR.

That sounds correct if you are getting the standard new State Pension (£220/week from April 2024).