Isio
We know the world of pensions can be a scary place. So, we’re committed to supporting our clients’ members and helping you understand your choices, helping you to make informed decisions.
Most people will still need to pay tax when they retire. So you will continue to get an annual tax code and pay tax on any income you earn over your personal allowance. The standard personal allowance for the tax year 2023/24 is £12,570.
What counts as an income?
Income includes things like:
- Annuity payments.
- Payments from income drawdown.
- Income from employment.
- Income from investments.
- Income from any rental property.
How is tax paid on money you take from your pension pot?
You can take a lump sum of up to 25% of your pension pot, tax-free. Once you have had your tax-free lump sum, any money taken from your pension pot is added to any other income you get in the tax year you take it. This includes paid work, taxable income from additional pension pots and your State Pension. If, at the end of the tax year, you have either under or overpaid on tax, it’s your responsibility to sort it out with HM Revenue and Customs (HMRC).
If you have an annuity, HMRC usually gives your pension provider your tax code. Your provider will then take off the tax you need to pay from your payments before they are paid to you.
The value of tax benefits depend on your individual circumstances. Your circumstances and tax rules may change in the future.
Tax codes
If you are receiving a pension from the Veolia UK Pension Plan or the Veolia Energy Pension Scheme then you have to pay income tax on your pension payments, but you do not have to pay National Insurance. Isio take tax from your pension before they pay it to you. You don’t have to do anything, this happens automatically. The amount Isio pay into your bank account is called the net payment.
Your tax code decides how much tax Isio will take from your pension before it gets paid to you. HM Revenue and Customs (HMRC) calculate your tax code every month and tell Isio what it should be. Isio cannot change or update your tax code without HMRC contacting Isio directly to provide them with this information.
Your tax code is based on your personal circumstances and takes into account your total income from all sources. Only HMRC can work out what your tax code is and they are the only people allowed to change it. If you think your tax code is wrong you must contact HMRC and ask them to change it. Isio cannot do this for you as your tax affairs are confidential and only HMRC will speak to you about your tax code.
If you want to check that your tax code is correct please contact HMRC directly:
Phone: 0300 200 3300
Textphone: 0300 200 3319
Outside the UK: +44 135 535 9022
Post: Pay As You Earn and Self Assessment
HM Revenue and Customs
BX9 1AS
United Kingdom
Opening times:
8am to 8pm, Monday to Friday
8am to 4pm, Saturday
Closed Sundays and Bank Holidays
Best time to call: Phone lines are less busy before 10am, Monday to Friday
