Civil Service Pension Tax Code means I'm worse off?

BopBopWeed

I can't understand why my civil service pension has increased this month, but I'm worse off because my tax code has been changed from 194L to 3L? My State Pension has gone up from £921 to £943.10 - is it to do with that? What's the point of increasing the pension but then making people worse off by changing the tax coder? Screen shots attached as I don't know how else to describe it. Any explanations welcome, thank you.

This is last month's "pay slip" (as they call it)

This is this months (April 2026) - more pension but I get less as am paying more tax as tax code is 3L?

eskbanker

You need to find out why your code has changed - if you have access to your online personal tax account then it'll be explained there, or if you received paper coding notices then that'll show what they've done and why. Presumably you have other income streams, have their codes changed too?

Ayr_Rage

Your SP has increased and is simply using up more of your personal allowance.

More of you overall income is now subject to tax hence the reduction in tax code.

You are better off that you were last month, also remember SP is paid every 4 weeks not monthly.

BopBopWeed

https://forums.moneysavingexpert.com/discussion/comment/81980386#Comment_81980386

No - not even had an explanation in the post as to why tax code has been changed. I logged into HMRC but it didn't say why. I guess it is what it is, but an explanation would have been appreciated!

BopBopWeed

https://forums.moneysavingexpert.com/discussion/comment/81980387#Comment_81980387

I hadn't thought of it like that, and yes my SP will be a little bit more next time as some of it was at the old rate this month. It is what it is, but an explnation by letter might have been good!

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81980397#Comment_81980397

'Explanation' was perhaps not the best choice of word, but your tax account should show their workings, in terms of what they expect your taxable income streams to be this year, together with whether you're maybe due to repay from underpaid tax in previous years? Do you have savings income, or anything other than the two pensions?

Your increase in SP will undoubtedly use up more of your personal allowance, but only £287 more, so that won't be the primary reason for the code change.

phlebas192

https://forums.moneysavingexpert.com/discussion/6666083/civil-service-pension-tax-code-means-im-worse-off

By your own figures, you are not worse offf - SP increased by £22.10, after tax CS pension decreased by £20,04. But that's only a small part of the picture. SP is 4 weekly so the monthly increase would be £23.94. More importantly, this is the April effect. Both your SP and CS pension payments will almost certainly be made up of some weeks at the old rate and some at the new. The May payments will give a better indication of your actual overall increase.

BopBopWeed

https://forums.moneysavingexpert.com/discussion/comment/81980412#Comment_81980412

Thank you - it was jsut a shock to see my CS pension lower than the months beoe even though i knew it had gone up! …I hadn't thought it through.

BopBopWeed

https://forums.moneysavingexpert.com/discussion/comment/81980411#Comment_81980411

No savings, and I have a small amount of income froma "side hustle" but i haven't done a return for that yet (I will have to do a self-employed one, I closed it when I retired). It was just a surprise to see my CS pension lower than normal when I knew it had risen, but obivously I haven't really thought it through.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81980436#Comment_81980436

Your tax code has decreased by nearly £2000 - that can not be explained by just the increase in the State Pension, as your full increase will be around £500 pa . As a previous poster said, there must be some other reason as well, and you will have to look again on your personal tax account to see how the new tax code has been calculated.

Marcon

Collection of underpaid tax from previous year(s) in respect of OP's side hustle…?