Tax on your pension
Any tax you owe on your pension is taken via Pay As You Earn (PAYE) before your pension payment reaches your bank account.
The amount of tax you pay depends on your tax code, which is issued by HM Revenue & Customs (HMRC). Your tax is not set by the Scheme or the scheme administrator, Railpen
If your income changes, for example as a result of your annual pension increase, then HMRC may change your tax code. This in turn will affect how much tax you pay.
The amount of tax you pay is likely to be higher if you are still working or return to work while taking your pension.
You can see your current tax code on your P60. This is available when you log in to your myESPS account. If you need help registering for a my ESPS account, or logging in, please check the step by step guide below.
Step-by-step guide to registering and logging in
If you have any questions about your tax code, you should speak to your local tax office or call the HMRC helpline on 0300 200 3300.
You can also find more information at gov.uk/tax-codes.
Tax if you work after taking your pension
If you’re working while also taking your pension, the amount of tax you will have to pay is likely to be higher. You can find out more at gov.uk/income-tax-rates.
If you have any questions about working while taking your pension, please speak to your employer directly.
You might also want to get independent financial advice. You can find an independent advisor in your area at unbiased.co.uk.
