State pension UK: How is income tax levied on payments? Rules explained | Personal Finance | Finance

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Similarly, if a person doesn’t work but get pensions from more than one provider, an example being workplace or personal pensions, HMRC will ask one of the providers to apply a lower tax code to compensate for the tax payable on the state pension.

Retirees should also remain aware of their tax obligations if they decide to defer their state pension.

If the eventual boosted payments from deferment push a person over the personal allowance, income tax will be due.

If state pensions are deferred for at least nine weeks, the payments will increase by the equivalent of one percent for every nine weeks of deferment.





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