Paying tax on your pension

Your Local Government Pension Scheme (LGPS) pension is an income. So, you may have to pay income tax on it if your overall income, including all pensions and wages, is more than £12,570 a year. We will take any tax you have to pay on your pension either by:

• Using the tax code on your P45; or
• If we don’t receive a P45 for you, using tax code 1257L on a month 1 basis

We will do this until the Tax Office tells us the new tax code to use. When we receive your new tax code, we'll refund any tax you have overpaid or collect any outstanding tax if you have underpaid.

When you start to receive pension from us, we tell the Tax Office. Once they know, it is the Tax Office’s responsibility to tell us the new tax code to use for your pension.

If you want to query your tax code, please contact the Tax Office directly on 0300 200 3300. When you call them, you will need to tell them your national insurance number and let them know that the Clwyd Pension Fund’s tax reference number is 914/YA14288.

You can also visit the GOV.UK website if you have any questions about your tax code.

P60s

You will receive a P60 from the Clwyd Pension Fund each May. It will show you how much pension you have received and the amount of tax you have paid from it in the previous tax year. Your P60 will be available on your Member Self-Service account, unless you tell us that you want to hear from us by post.