Taxing your retirement income

Retirement account

If you have bought an annuity with your retirement account, the provider will be responsible for taxing your pension.

Benefits built up before April 2011

DMGT Pensions will pay your pension instead of your payroll department. We will tax your pension through PAYE, just like your salary has been, although you will not have to pay National Insurance contributions.

When you retire, we will ask HM Revenue & Customs (HMRC) for a tax code. While we wait for this to be issued we will take off basic rate tax from your pension with no tax-free allowances.

When we receive your tax code we will refund any tax you have overpaid in the same tax year to you. If you overpaid tax in a previous tax year, HMRC will be responsible for refunding this.

If you have any queries about tax on your pension payments you should contact our tax office.