Final Approach

bonnyrigger

Wheels down, flaps at 80% etc etc.
Date now in with employer for 31 May.
Aiming for total taxable income of 27491 in 25/26 (top of Scottish 20% band).
Wages will be about 7900 over Apr/May. Am asking for LGPS pension of 630 month to be activated immediately but not expecting this to kick in until July/August as it has a linked AVC to sort out.
Rest to come from fully taxable RL pension, probably as a lump sum once I know what I need to get to 27491 figure.
May have to live off savings/ISA for a short time if RL/LGPS are a bit slow.
Do I need to set up a HMRC tax account for 25/26 or will LGPS/RL sort it out for me?

xylophone

You can set up a personal tax account

https://www.gov.uk/personal-tax-account

Your salary before retirement will be taxed as normal.

In due course LGPS will be advised of your situation and a new tax code issued as appropriate.

As yo are retiring so early in the new tax year, I would imagine that any necessary adjustments would be made well before its end - you can check your PTA for yourself.

Have you obtained a state pension forecast?

https://www.gov.uk/check-state-pension

https://www.gov.uk/income-tax-rates

https://www.litrg.org.uk/savings-property/tax-savings-and-investments

https://www.litrg.org.uk/pensions/pension-withdrawals/tax-pension-income#:~:text=Regular pension income,before paying it to you.

bonnyrigger

Cheers, full SP in May 2029. Sounds like a PTA next FY is the way to go then.
Something to do over June/July while enjoying the summer.

Albermarle

bonnyrigger said:

Cheers, full SP in May 2029. Sounds like a PTA next FY is the way to go then.
Something to do over June/July while enjoying the summer.

You can not pre-empt a anew pension/income stream starting by informing HMRC in advance. You have to wait for the first payment and the provider will inform HMRC, and they will issue the provider with a tax code for you.

However it is quite common for things to take a while to settle down, when you stop employment and then start two new pensions soon afterwards in the same tax year.
So keep an eye on your PTA and maybe you will have to call HMRC at some point.