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HMRC update for people impacted by state pension change as ‘DWP will notify us’

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Daily Mirror

State pension payments increase in April

A man checks his finances
State pensioners could see their tax code changed(Image: Getty)

State pensioners may notice a change to their tax code. HMRC explained its rules after a question from a person who was soon to start claiming their state pension. The person approached HMRC over social media, as they were set to start claiming their payments from February 2026.

The taxpayers told HMRC that as they would soon be claiming the benefit, they would “need to notify you of this increase to my income”. They explained their situation: “I can see my two personal pensions in my account but can’t see how to add the state pension so my tax code is adjusted.”

The full new state pension is currently £230.25 a week, with payment rates set to increase by 4.8 percent next April, boosting the full new amount to £241.30 a week. State pension payments increase each April in line with the triple lock policy.

A man reading a letter
HMRC could change your tax code when you start to claim the state pension(Image: Getty)

This increases payment in line with either 2.5 percent, the rise in average earnings or inflation, whichever of these three numbers is highest. Responding to the taxpayer, HMRC said: “DWP will notify us when the state pension starts, and we’ll amend your tax code to suit.”

Key changes to the state pension

You can currently start to claim your state pension age when you reach the age of 66. However, the state pension age is increasing from next April, rising gradually to 67 by April 2028.

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You can put in your claim for the payments through the Government website, up to three months before you reach state pension age. You should get a letter from the DWP with an invitation code you can use to put in your claim for the benefit. A person can also put in their claim by calling the Pension Service, up to four months before they reach state pension age.

A woman checks her finances
HMRC has explained when it will change state pensioners’ tax codes(Image: Getty)

When can my tax code change?

Your tax code can change for a variety of reasons, such as if you start a new job or if you start claiming a taxable state benefit, such as the state pension. Your tax code may also change if your weekly state pension amount goes up.

A person can check how much state pension they are on track to receive through the Government website. You typically need 35 years of National Insurance contributions to get the full new state pension.

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