Pension Tax Code

Linton

gazzaw1 said:

I am due state pension this month, I have just received a new tax code because I will receive this pension, this is surely taxing the pension twice.

State pension is taxable but is paid gross.  The tax due is taken from other taxable income by reducing the tax free allowance.

AlanP_2

That looks like a part year of SP payments which is logical so bear in mind that the full annual SP amount will be offset against your personal allowance in future tax years.

You aren't being taxed twice, if you added up your taxable income (which includes SP), deducted the standard personal allowance at £12,570 and then worked out relevant tax on the remainder (20% on the next £37,700) it would come out correct.

Dazed_and_C0nfused

gazzaw1 said:

I am due state pension this month, I have just received a new tax code because I will receive this pension, this is surely taxing the pension twice.

Can you explain how you think you will be taxed twice?