HM Revenue and Customs treats your LGPS pension as 'earned income' and the Gwynedd Pension Fund must deduct Income Tax from any pension payments we make to you, in accordance with procedures and instructions published by the Tax Office.
The amount of tax that you pay on your pension depends on your income and your personal circumstances.
If we receive your P45, from the current financial year, either from your employer or with your retirement forms, we will operate the tax code stated on your P45, to calculate your retirement benefits. If we do not receive your P45 or we receive it after we have processed your retirement benefits, then the tax code we operate will be subject to a Basic Rate tax code. This means you will be taxed at 20% or 40 % dependent on your gross pension.
HM Revenue and Customs Tax Office will determine your tax code and send the details to us. They will assess all your income due in the financial year and allocate the appropriate tax accordingly.
If you have a query about your tax code, then you will need to contact HMRC directly. We can't make any changes to your tax code unless HMRC tell us. You can contact them on 0300 200 3300 or visit their website using the link below. When you contact them, you will need your National Insurance Number and our PAYE Reference Number (PAYE) PAYE 914/B11081 to hand.