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  • Income tax explained

At the start of the new financial year, you may see a change in your tax code.

HMRC has instructed us to apply this tax code to your pension. HMRC calculate your tax code by assessing all of your income due in the new financial year.

If you disagree with the tax code that has been applied, or would like further information on how it has been calculated, please contact HMRC. Please do not contact the Fund, as only HMRC can review and make changes to your tax code.

If  HMRC determines that your tax code requires an update, you will not need to inform us, as HMRC will contact us directly using their Real Time Information (RTI) system. Once we receive notification of an updated tax code from HMRC, we will arrange for any tax refunds to be paid to you in the next pay period (where applicable).

Income tax explained

Your LGPS pension is a taxable income, but any lump sum is paid tax free. The amount of tax that you pay on your pension depends on your income and your personal circumstances.

Your first pension payment will be subject to a 0T tax code unless we have received a P45 with your forms, this means that you will be taxed at 20% or 40% dependent on the gross amount paid.  The HM Revenue and Customs Tax Office will then determine your tax code and send details to us electronically,  which will then generate a tax refund if applicable on the next payment made to you.

HMRC can instruct us to update your tax code throughout the year which may result in a refund of tax paid or any arrears of tax due being collected. 

West Midlands Pension Fund cannot amend your tax code without instructions from HMRC and cannot contact the tax office on your behalf.

You can check your current tax code by accessing your pension payslip on the Pensions Portal.

If you want to query the tax code that has been applied to your pension, please contact HMRC using the following contact details quoting tax reference 068/W105:

Telephone queries:

0300 200 3300

HM Revenue & Customs are open 8am-8pm Mon-Fri, 8am-4pm Saturday

Written tax queries:

PAYE & Self-Assessment

HM Revenue & Customs


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