Skip to main content

TPT Retirement Solutions
FAQs

Why has tax been deducted from my pension?

CATEGORIES:

  • Members
  • Payments

Any pension paid to you is normally treated as earned income for income tax purposes, although you don’t pay any National Insurance contributions on your pension income. Tax is deducted from your pension under the Pay As You Earn (PAYE) system.

Initially, tax is deducted at basic rate (20%).Once we have received your personal tax code from the HM Revenue and Customs, this will be used and adjustments will usually be made for any under or overpayment of tax.

If you have any queries about your personal tax code, please contact HMRC, quoting your National Insurance number and our tax reference: 120/P42099.

HMRC, Pay As You Earn, BX9 1AS   

Telephone: 0300 200 3300

General information relating to tax issues can also be found at Gov.uk.