Tax and your retirement

Whilst your lump-sum payment from your Local Government Pension Scheme benefits is completely tax-free, the monthly payments your receive are considered to be income and are taxed just like your earnings were using Pay As You Earn (PAYE).The tax you pay is calculated from all income you receive and can also include:

• your state pension
• your earnings if you work again
• interest from investments
• Jobssekers Allowance
• Incapacity benefit

The tax office needs to know your income from all sources in order to assess your tax allowance. Your tax allowance is offset against your total income and tax is due on the rest.

Tax queries

If you have any questions about your tax you should contact the tax office

In writing: HM Revenue & Customs
                Notts & Derbyshire Area
                Howard House
                Castle Meadow Road
                Nottingham
                NG2 1AB

tel: 0845 302 1413

If you raise a query with the tax office you will need to quote tax reference number 507/504800 and your National Insurance number to help them find your record.

If your tax code changes, the tax office will let you know. They will also tell us so our Pension Payroll team can update your records.