Tax matters

All pension is regarded as earned income and is added to any other income you might receive, including your State pension, for assessment of tax.  Any tax due on your Company and State pensions will be deducted under PAYE from your company pension in accordance with the instructions received from HM Revenue and Customs ('HMRC').

It is not possible to apply the same tax code to your pension as was applied to your income before retirement.  Initially the Compass Group Pensions Department will use the emergency tax code, which equates to the Personal Allowance you are entitled to, in order to calculate how much tax (if any) needs to be deducted from each gross pension payment. 

We will advise HMRC of the details of your pension and they will send us a new tax code, if appropriate.

Should you have any queries relating to the taxing of your pension you should contact HMRC at North East Metropolitan Area, Room BP4009, Benton Park View, Longbenton, Newcastle NE98 1ZZ or by telephone on 0845 3000 627.

When contacting HMRC by letter always quote your National Insurance Number and the Plan's tax reference which is 120/C4334. 

Similarly, you should have these references to hand before making a telephone call to HMRC.

Please note that we receive tax codes electronically from HMRC and we are not able to amend them.  This is why you do need to contact HMRC direct, rather than the Compass Group Pensions Department, if you believe your pension is being incorrectly taxed.

At the end of each tax year you will receive a form P60 showing the gross amount of pension, tax deducted and net amount of pension paid to you during the previous twelve months.  You should keep your P60 form and any ‘pay slips’ that you receive as they may be required by HMRC or the DWP as evidence of payment and of tax deduction.