Tax office details

The pension we pay you is taxed under the Pay As You Earn (PAYE) system, just like your salary would have been.

When you retire, we will ask HM Revenue & Customs (HMRC) for a tax code. Before we receive this we will deduct tax at Basic Rate with no tax-free allowances. Once we have received a tax code from HMRC, we will refund any overpayment of tax in the same tax year via our payroll system. If an overpayment of tax has occurred in a previous tax year, the responsibility to refund this falls to HMRC.

The amount of overpaid tax may not be as high as anticipated as account needs to be taken that DMGT pensions are paid in advance on the first day of the month or where this falls on a weekend/bank holiday, the last working day of the previous month. As a result in the first year of retirement you may receive a total of 13 combined salary and pension payments. Tax allowances are spread over 12 monthly payments, so one payment is subject to tax at the full rate without any allowance.

In accordance with data protection regulations, we are prohibited from acting as our member’s agents for tax enquiries. All queries concerning tax must be made direct to our tax office, quoting your National Insurance number and our tax reference 846/FSN1P:

HMRC
L.P. Lothians
Grayfield House
5 Bankhead Avenue
Sighthill
Edinburgh
EH11 4AE

Tel: 0845 302 1409