HMRC has confirmed it will make changes under the triple lock policy in April
HMRC has issued a statement about changes to the state pension(Image: Getty)
HMRC has provided an update regarding upcoming tax modifications affecting state pensioners. The organisation confirmed it will “adjust” individuals’ records as their benefit amounts alter.
State pension payments are scheduled to increase by 4.8 per cent in April, courtesy of the triple lock mechanism. This measure guarantees that payments rise in accordance with whichever is greatest among 2.5 per cent, the growth in average earnings, or the inflation rate.
Information on the Government website reminds taxpayers that HMRC will “change your tax code if you need to pay a different amount of tax”.
The guidance outlines various circumstances that can prompt this alteration to your tax code, including when “your weekly state pension amount changes”. HMRC was asked to explain under what circumstances a state pensioner’s tax code might require modification when their payments fluctuate.
An HMRC spokesperson said: “We adjust tax codes based on information from DWP to help pensioners pay the right tax. Anyone who thinks their tax code is incorrect can update their details on our app or via their online tax account, or contact our helpline if unable to go online.”, reports the Express.
The organisation clarified that anyone receiving the state pension gets the triple lock increase “automatically” each April. The rise takes effect from the beginning of the new tax year, on April 6.
HMRC officials explained that a claimant’s tax code may be revised when the DWP notifies HMRC of the updated, uprated state pension figure. The organisation stated: “This process can trigger new tax code calculations for both the current tax year and the following year.”
Get all the latest money news sent straight to your inbox by signing up to our newsletter here.
The majority of pensioners liable for tax are enrolled in Pay As You Earn, whereby HMRC calculates your annual state pension by working out one week at your previous state pension rate and 51 weeks at the updated rate, then modifying your tax code accordingly.
HMRC indicated this approach ensures “most pensioners pay the right amount of tax in real time”. Your tax code can be viewed and employment or other tax information updated via the HMRC app or through your online tax account.
Should you suspect your tax code is incorrect and online contact proves unsuccessful, telephoning HMRC remains an option. The number to ring for income tax enquiries is 0300 200 3300.
The helpline operates Monday to Friday, 8am to 8pm, and Saturdays, 8am to 4pm.
For additional assistance regarding your state pension, the Government’s Pension Service can be reached on 0800 731 0469. This service is accessible Monday to Friday, 8am to 6pm.