Veterans UK have seen an increase in member’s calls to the Armed Forces Pension Payment provider (Equiniti Paymaster) querying individual tax codes. Where members are in employment and in receipt of a pension HMRC may have incorrectly based the tax code on an individual’s pension rather than their main salary.
What is my tax code used for?
Individual tax codes are used by your pension provider to work out how much Income Tax should be taken from your pay and pension. The code is calculated against an individual’s main salary.