Tax News Alert for retired members

How the amount of Income Tax you pay could change from April 2025

Most people are allowed to receive a certain amount of income in a single tax year without having to pay tax on it. This is called the Personal Allowance. For the tax year 2025-2026, the Personal Allowance remains at £12,570.

Please note the Personal Allowance hasn’t increased from the last tax year. However, the pension you get from us has increased by 1.7% and the State Pension (if you receive it) has increased by 4.1%. 

This could mean that if you were previously a non-taxpayer, you will now pay tax if your total income is over £12,570 a year. If you were already a taxpayer, you could find that you will now pay more tax because your total pension has increased, but your personal allowance hasn’t.

The value of your State Pension is taken from your total Personal Allowance, the remainder of which we apply against your Norfolk Pension Fund pension.

Please read pages 5 – 8 of the latest addition of Primetime for more information.

If this doesn’t answer your query regarding your tax code or the amount of tax you have paid, please speak to HMRC on telephone number 0300 200 3300. We are unable to answer questions in respect of your personal tax situation, so please contact HMRC.