You can check your tax details with HMRC online
HMRC has issued a statement about changes to the state pension(Image: Getty)
HMRC has released a statement on imminent tax changes for state pensioners. The tax authority has explained how it will “adjust” a person’s records as their payments change.
State pension payments are due to rise by 4.8 percent in April, courtesy of 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. The Government website includes some guidance for taxpayers, reminding them that HMRC will “change your tax code if you need to pay a different amount of tax”.
The advice mentions several changes to your situation that can trigger this alteration to your tax code, one of which is “your weekly state pension amount changes”. HMRC was asked to clarify in what cases a state pensioner’s tax code may need to be changed if their payments change.
A 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. Department officials also said that a claimant’s tax code may be updated when the DWP informs HMRC of their new, uprated state pension amount.
The department explained: “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.
In this case, HMRC calculates how much state pension you receive over the year by working out one week at your previous rate of state pension and 51 weeks at the new rate, and 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 update your employment or other tax details through the HMRC app or through your online tax account. If you believe your tax code is incorrect and you can’t get in touch online, you can also ring HMRC.
The number to call if you have an income tax query is 0300 200 3300. The phone line is open Monday to Friday from 8am to 8pm and on Saturdays from 8am to 4pm.
For other guidance with your state pension, you can also contact the Government’s Pension Service on 0800 731 0469. This is available Monday to Friday from 8am to 6pm.
