HMRC state pension tax explained
HMRC state pension tax explained refers to how the UK State Pension is treated for income tax purposes. While the State Pension itself is paid gross, it counts as taxable income and is added to other earnings when calculating total tax liability. HMRC collects any tax due through PAYE on other income sources or via Self Assessment, depending on an individual’s circumstances, making it important for pensioners to understand allowances, tax bands, and reporting requirements.