UK Tax Treatment Teachers Pension and State Pension

In receipt of a teacher’s pension (subject to tax in UK) and the uk State Pension.

The amount of TP paid is less than the UK tax allowance (currently £11500 2017/18) at about £6500 pa.

AFAIK, the Tax code should be 1150L but the Teacher’s Pension people have said that HMRC have told them to apply a tax code of 536L M1 which incurs a tax payment of about £15 per month which does not seem right. Even the Month 1 basis flag seems wrong as have been in receipt of TP for 4 years but only last year started receiving State Pension (WASPI women, and all that!)

We completed the form France Individual and we know that HMRC have received this.

The tax code 536L seems at odds with what it should be in ordinary circumstances and I’m struggling to reconcile why this might be.

For example, do HMRC deduct the State Pension amount (not taxable in UK but calculated for tax in France) from the TP in order to set a lower free pay allowance?


'Twas a mistake by HMRC. Fixed with a phone call this morning to the Cardiff Tax Office.

The normal tax allowance £11500 applies; the State Pension had been incorrectly added to the TP and once advised, the tax officer corrected the record and there will be no tax to pay.

1 Like