Pension and Taxation

Details can be found at www.gov.uk/government/organisations/hm-revenue-customs/contact/income-tax-enquiries-for-individuals-pensioners

Be sure to include your National Insurance number and the Scheme PAYE reference number. The MPS PAYE reference number is 083/MPS.

We also have all HMRC contact details in the Contact us section of the Scheme’s website.

HMRC’s website can be found at www.hmrc.gov.uk/incometax/index.htm

Or you can get general information on how pensions are taxed from the Government’s website www.gov.uk/tax-on-pension

You can write to:

HM Revenue & Customs
Pay as you Earn and Self-assessment
HM Revenue & Customs
BX9 1AS

Be sure to include your National Insurance number and the Scheme PAYE reference number. The MPS PAYE reference number is 083/MPS.

Your first pension payment is taxed using the current emergency tax code. Once your first pension payment has been made, details of your pension are sent to HMRC who then provide the Scheme administrator with the correct tax code to use for future payments.

Overseas pensioners are treated in the same way for their first pension payment and will initially pay tax. If you live overseas and do not think you should pay UK tax please contact HMRC; if they agree they will provide the Scheme Administrator with a revised tax code.

We cannot provide estimates of tax deductions or of the actual amount of pension which will be paid to you, as these are based on information provided by HMRC. The Government’s website gives an explanation of how pensions are taxed at www.gov.uk/tax-on-pension

When you get a new tax code from HMRC, the same information will normally have been sent to the Scheme Administrator. If the Scheme Administrator receives the new code too late to make the change for the next pension payday, it will be used from the following month. If this happens, HMRC will let you know whether you have paid too much tax, or not enough.

The Scheme Administrator can only use tax codes that are provided to them by HMRC. If you have any queries about your tax code you should contact HMRC in one of the ways outlined above.

The Scheme Administrator will apply the tax code they have received from HMRC and deduct the tax that is due. If tax is not being deducted, it might be that you are earning below the level at which you start to pay tax.

HMRC will not discuss a member’s tax affairs with us, so you will need to contact HMRC direct, using one of the contact methods outlined above. If you are unable to pay a tax demand you should let HMRC know as soon as possible. HMRC may allow you to repay the tax due in instalments.

No. You do not pay National Insurance contributions on any payments that you receive from a pension scheme.