Your pension payments are taxable as earned income in the same way that your earnings were before retirement. This means, subject to your personal tax allowance, if your income is high enough, you will still have to pay tax when you retire.
The tax you pay depends on your age and marital status as well as the total amount of income that you receive. The following items could be included in what makes up your assessable income, for tax purposes:
- The pension you receive from us
- Any other pension that you receive, including State Pension
- Unemployment benefit
- Earnings from other jobs/self employment
- Interest on some savings and investments
If you receive a lump sum Retirement Grant as part of your benefits this is paid TAX FREE.
If you have any tax queries, please contact the tax office, on the details below, quoting the relevant reference number:
HMRC, Sefton Area Office, Taxpayer Service Office, The Triad, Stanley Road, Bootle, Merseyside, L75 2YY. Tel: 0845 3003939
- Members of Cambridgeshire Pension Fund: CCC Pensioners 475/ZB50342 or 475/MB50343 and your National Insurance number
- Members of Northamptonshire Pension Fund: NCC Pensioners 475/KB50344 or 475/VB50347 and your National Insurance number
If you have recently received your 2016/2017 P60, please note that the change of the pensions payroll system in October resulted in a change to the PAYE tax reference and as such the P60 is showing two sets of taxable pay and tax paid figures as well as a total figure. The first refer to this ‘employment’ which relate to the period from October to the end of year and the second to ‘previous employment’ which relates to the period up to the change.
If you are required to complete a tax return for the 2016/2017 tax year you will need to provide the total of both periods.
For more details on the change in payroll system, please visit the FAQ page.