Late Change to Tax Code FY23/24 On Achieving State Pension Age

GW844

I retired from the RAF in March 2023 when reaching age 65.

I started FY 23/24 on a Tax code of 1396M based only on personal allowance, marriage transfer allowance from my wife and a professional subscription.  My income for the year was solely an RAF pension well within the upper limit for 20% basic tax.

However, when I reached State Pension Age in late March 2024 with less than 3 weeks left of the tax year they issued a new tax code of 371MX based on receiving a full year's State Pension being paid and pushing me a good way into the Higher tax bracket into  although I received one payment of £478 in year.  

Will I therefore receive a large tax bill?  How do I get them to recognise that on £478 State pension was recived?

molerat

How much you received is not relevant, state pension is taxable in the year it is due not paid, some 23-24 due pension could be paid this tax year. DWP inform HMRC of pension due. The X suffix to the code means that each month is taxed stand alone.  The amount "pre-taxed" by the code reduction was therefore (£13960-£3710)/12 = £854.  Your tax free amount for the month was £309.92 meaning higher rate would be deducted on anything above £3451.92. Did you receive an RAF pension payment using the new code or was it applied too late ?  Your tax will be reconciled later in the year and any discrepancy will be paid out later this year or collected in 25-26 by a code change.