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Tax and allowances
Pension income is taxable, but tax is rarely taken off before it is paid. What that means for allowances, tax codes and the letters that follow.
3 articles in this section
Tax and allowances
Nobody deducts tax from your State Pension. That is the catch.
The payment arrives gross. Where the tax actually gets collected surprises a lot of people in their first year.
Tax and allowances
The allowance that stays still while pensions rise
One number moves every April and the other has not moved since 2021. That is why more pensioners now file a tax return.
Tax and allowances
The top-up a lot of pensioners never ask about
It is not paid automatically, it is not part of the State Pension, and take-up has been short of eligibility for years.
State Pension
Income and saving
Home and bills
Dates and checks