Pensioners and tax
Welcome to the ‘pensioners and tax section’ of our website. This section is for you if you are thinking about taking money out of your pension, approaching retirement or are a pensioner on a low income.
If you are thinking about taking money out of your pension, already a pensioner, or are coming up to retirement, you may have to deal with HM Revenue & Customs (HMRC), as they assess and collect tax and pay out tax credits and some other benefits.
HMRC do not always get things right. So it is important for you to check the tax you pay on your income. You may also need to contact HMRC if you do not understand something or if you disagree with them.
What information and help can I find in this section?
We encourage you to try to check your tax and solve problems for yourself. It is easier and cheaper in the long run if you can understand and manage your own tax affairs.
We help you to do this by providing information on:
- approaching retirement
- what is income?
- how do I work out my tax?
- what income is taxable?
- what tax allowances am I entitled to?
- what tax rates apply to me?
- how is my tax collected?
- how do I check my coding notice?
- tax code problems on retirement
- what should I do if I have not paid enough tax?
- what tax do I pay on savings income?
- how do I claim any tax back?
- do I need to complete a tax return?
- what National Insurance do I pay after retirement?
- what happens if I retire abroad?
- what is my tax position when I take money from my pension flexibly?
- how do I cash in my small pension (‘trivial commutation’)?
- what tax do I pay on my state pension lump sum?
- what is state pension deferral?
For information on the scope of the help that you can expect to find in this section, please see the About Us section.
What do I do if I am not happy with an HMRC decision?
HMRC manage the UK tax system. You can find their contact details on the GOV.UK website.
If you do not agree with a decision of HMRC, find out what action you can take on our ‘tax appeals’ page.
If you are unhappy with the way in which you have been treated by HMRC, you may be able to make a complaint.
What is Tax Help for Older People?
Some years ago, LITRG founded a separate charity, Tax Help for Older People, to give free tax assistance to older people on low incomes.
So, if you cannot solve your own problem by reading through our website, you could try telephoning the Tax Help for Older People helpline.
Where can I get more help?
If you want general tax help, visit our ‘tax basics section’.
Capital gains tax
If you want help with capital gains tax, visit our ‘other tax issues section’.
If you want help with inheritance tax, visit our ‘bereavement and tax section’.
If you are claiming any state benefits, visit our ‘tax credits and benefits section’.
If you are a pensioner, but also an employee, visit our ‘employed section’.
If you are a pensioner, but are also self-employed, visit our ‘self-employment section’.
Third party organisations
Find out where to get help from third party organisations in our 'getting help section'.