HMRC has announced upcoming adjustments to tax codes for state pensioners in response to the scheduled increase in pension payments. Starting this April, state pension payments will rise by 4.8 percent in line with the government’s triple lock policy. This policy guarantees that state pensions increase annually by the highest of inflation, average earnings growth, or 2.5 percent.
The triple lock increase will be applied automatically from the start of the new tax year on April 6. HMRC will update pensioners' tax codes based on information received from the Department for Work and Pensions (DWP) to ensure accurate tax deductions are made.
When a person’s weekly state pension amount changes, HMRC may revise their tax code to reflect the new payment rate. This update affects tax calculations for both the current and following tax years. For pensioners enrolled in Pay As You Earn (PAYE), HMRC calculates the annual pension by taking one week at the previous rate and 51 weeks at the updated rate, then adjusts the tax code accordingly. This process helps pensioners pay the correct amount of tax in real time.
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Pensioners are encouraged to check their tax codes regularly. Updates or corrections can be made via the HMRC app or their online tax account. If online access is not possible, HMRC can be contacted by phone at 0300 200 3300, available Monday to Friday from 8am to 8pm and Saturdays from 8am to 4pm.
For additional support related to state pensions, claimants can contact the Government’s Pension Service at 0800 731 0469, open Monday to Friday from 8am to 6pm.