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HMRC internal manual

PAYE Manual

PAYE operation: pensioners: introduction

You may receive notification of a pension from any of the following sources

  • An employer
  • Trustees of a pension fund
  • The Department for Work and Pensions (DWP). In Northern Ireland this is the Department for Social Security (DSS)
  • The individual

This section includes the procedures for dealing with each of the above cases.

Notification from an individual 

You may receive the first notification of a pension from an individual; on, for example

  • A Self Assessment return
  • A claim for repayment
  • Form P91 if the pensioner takes up further employment


1. It is important that you deal with pensioner cases promptly at all times to limit the amount of underpayment arising and to avoid any unnecessary worry for the pensioner.
2. You should follow guidance at PAYE103011, steps 22 - 26, where notification of pension is received after the individual has reached state pension age, but
  * State pension is not held in IABD
  * There is no Contact History note to state pension has been deferred