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NHS pension

(3 Posts)
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Sallywally1 Fri 15-May-26 11:44:22

Just received this months. I am £6 worse off, having received a ‘rise’. I get the full state pension. My tax code has changed to 60L. Can anyone explain this to me as simply as possible as figures make me dizzy. I’ve never been good at maths

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petra Fri 15-May-26 11:55:52

Probably because you’ve gone above your yearly tax allowance.
Like a lot of us.

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Cardamom Fri 15-May-26 11:57:05

Personal Allowance has been frozen until 2028 at £12,570 therefore, any income you have coming in that's above that amount is taxable. State Pension cannot be taxed at source and so is paid to you in full, therefore any taxes due are deducted from any private pensions or other income you have. Because State Pensions are triple locked to increase each year, but the Personal Allowance is not, more and more pensioners, who's sole income is the state pension, will be dragged into paying tax and, in their cases they will have to complete a Simple Tax Assessment form and pay any owing taxes directly to HMRC. It's called Fiscal Drag.

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