With a state pension the government do not normally take tax from it so all your other income is taxed instead at your tax rate - normally 20% Basic rate. We all get 12570 tax free unless we go over £100k. Put it all on your tax return and then any tax still owed or overpaid is calculated It’s because the government don’t deduct tax on pensions . It’s still taxable though Hope that helps
Can you clear up some confusion for me. If you are 65 years old with a Tax Code of 1257L and complete a self assessment return each year paying tax on all income. If you then receive the state pension at 66 does HMRC give you a new tax code so tax isnt deducted at source from the pension but you pay the tax by declaring the pension on your tax return or do you in effect pay the tax twice but then have to claim it back or is there somewhere on the self assessment tax return that covers this?
