Tax on private pension

twitchy

I paid tax on all of my income this tax year and don't have any significant savings, premium bonds and an ISA.
On my P45 amount of £11258.83 I paid £1698.66 in tax. My tax code for 24/25 was 1263L but my employer hasn't sent my P45 yet.

sheramber

How do you arrive at 15374 for your total income for the year April 6 2025  to April 5 2026? 

When were the first pension payments made?

How much tax has been deducted from the £158 pension? 

How much tax was deducted from your income to 30/6/25? 

QrizB

twitchy said:

I finished work on 30/06/2025 and my P45 amount is £11258.83 and my tax code was 1130L

OK, so you've earned £11258 from employment this tax year.

Plus you're receiving £1280 a month from your pensions. If you've been receiving them since July, you'll have nine months of pension this tax year, totalling £11520.

twitchy said:

Good day everyone,
My total income for the year is £15374 and my allowance according to the HMRC website is £12570.

£11258 + £11520 is £22778, not £15374.

If you get a personal allowance of £12570 (and it's not entirely clear that you will) you'll have to pay 20% income tax on £10208, which is £2041.60.

SVaz

Isn’t 1130 when you transfer marriage allowance?  That’s what my Wife’s is. 

Dazed_and_C0nfused

SVaz said:

Isn’t 1130 when you transfer marriage allowance?  That’s what my Wife’s is. 

No, but the op is referring to their tax code anyway not their Personal Allowance.

The two things are totally different.

Personal Allowance is, for most people, £11,310 or £12,570.

badmemory

I suspect that HMRC do not know that your previous employment (before you retired) has terminated.  Once that settles in expect some new tax codes.  You can work out for yourself how much tax you should pay for the year, as long as your earnings/pensions are under £50k it is very simple.  Too many people allow the letters HMRC to panic them.

dunstonh

twitchy said:

I paid tax on all of my income this tax year and don't have any significant savings, premium bonds and an ISA.
On my P45 amount of £11258.83 I paid £1698.66 in tax. My tax code for 24/25 was 1263L but my employer hasn't sent my P45 yet.

The P45 is important as this tells HMRC that your income from that payroll has ended.  You also give the P45 to your highest alternative payroll so they can give some degree of continuation.    

The two pensions being paid as BR, sound as if HMRC has notified them to use that rate. 

It always takes several months for the tax codes to settle when there are multiple sources.  Partly as HMRC notify them of the tax code to use by month 2, and partly because you have multiple payrolls commencing at different times, which could result in several adjustments.   The lack of P45 to give to the highest payroll is just delaying it more.

twitchy

Thanks for everyones positive responses, it's sort of set my mind at rest that things will sort themselves out.
According to my P45 the tax code at leaving is 1130L
Total pay in this employment is £7713.10 and total tax in this employment is £971.40. this is from 05/04/2025 to my leaving date.
My leaving date was 30/06/2025
My P60 tax code to 5th April 2025 1263L
Thanks again everyone.

Dazed_and_C0nfused

twitchy said:

Thanks for everyones positive responses, it's sort of set my mind at rest that things will sort themselves out.
According to my P45 the tax code at leaving is 1130L
Total pay in this employment is £7713.10 and total tax in this employment is £971.40. this is from 05/04/2025 to my leaving date.
My leaving date was 30/06/2025
My P60 tax code to 5th April 2025 1263L
Thanks again everyone.

If you have previously claimed job related expenses then you need to ask HMRC to remove those for the 2026/27 tax year (you keep the whole lot this I think I'd they are just flat rate laundry type expenses).

You could now ask HMRC to issue a new tax code to your largest pension so they stop deducting basic rate tax from the whole £1000.