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TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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im due to retire in the near future my pensions are taxed

im due to retire in... Show More
im due to retire in the near future my pensions are taxed along with my wages,when i lose my wages will the tax on my pensions be reduced ??. thanks you sg
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and thank you me to assist you.
When you get a pension you also have your personal allowance. How much income tax you pay will depend on your income. Your income sets your rate.
If your income is decreased then your tax rate will decrease.
When your income only comes from one source you’ll usually have one tax code. You, your employer or your pension provider will tell HM Revenue and Customs (HMRC) about the change in your situation.
HMRC sends a new tax code to your pension provider. Once they’ve got it, they’ll use it to work out how much tax to take from your payments from the next time they pay you. This could be reduced based on your income going down and not having the additional wages.
I sincerely ***** ***** answers your question.
You will be sent a notice from HMRC advising of the change.