You may want to contact HMRC to make sure your details are correct
HMRC has issued a statement about changes to the state pension(Image: Getty)
HMRC has provided an update on looming tax changes for state pensioners. The organisation confirmed it will “adjust” a person’s records as their payments change.
State pension payments are due to rise by 4.8 percent in April, in line with the triple lock policy. This measure ensures payments increase in line with whichever is highest of 2.5 percent, the rise in average earnings or the rate of inflation. Guidance on the Government website informs taxpayers that HMRC will “change your tax code if you need to pay a different amount of tax”.
The advice goes on to mention several changes to your situation that can prompt this change to your tax code. One of these is if “your weekly state pension amount changes”.
HMRC was asked to clarify under what circumstances a state pensioner’s tax code may need to be changed, if their payments change. An HMRC spokesperson said: “We adjust tax codes based on information from DWP to help pensioners pay the right tax.
“Anyone who thinks their tax code is incorrect can update their details on our app or via their online tax account, or contact our helpline if unable to go online.” The group clarified that anyone claiming the state pension receives the triple lock increase “automatically” each April.
The increase is applied from the start of the new tax year, on April 6. HMRC officials explained that a claimant’s tax code may be updated when DWP notifies HMRC of their new, uprated state pension amount.
The department said: “This process can trigger new tax code calculations for both the current tax year and the following year.” The majority of pensioners who pay tax are enrolled in Pay As You Earn.
For these claimants, HMRC calculates your annual state pension by working out one week at your previous state pension rate and 51 weeks at the new rate, and then adjusting your tax code accordingly. HMRC said this ensures “most pensioners pay the right amount of tax in real time”.
You can check your tax code and amend your employment or other tax information via the HMRC app or through your online tax account. If you are concerned your tax code is incorrect and cannot resolve this online, you can alternatively contact HMRC by telephone.
The number to ring for income tax enquiries is 0300 200 3300. The helpline operates Monday to Friday from 8am to 8pm and on Saturdays from 8am to 4pm.
For other support regarding your state pension, you can also ring the Government’s Pension Service on 0800 731 0469. This service is available Monday to Friday from 8am to 6pm.
