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HMRC Sets Out Tax-Code Changes for Pensioners Ahead of April’s 4.8% State Pension Rise

HMRC urges pensioners to check their codes via its app or helpline because PAYE estimates based on DWP updates can change deductions.

Overview

  • The 4.8% triple lock increase to the state pension applies automatically from April 6, 2026, at the start of the new tax year.
  • DWP will notify HMRC of uprated pension amounts, triggering recalculations that can affect both the current tax year and the next.
  • For most people taxed through PAYE, HMRC assumes one week at the old pension rate and 51 weeks at the new rate to set the annual figure.
  • HMRC says tax codes are predictions of taxable income, so adjustments can result in refunds or extra amounts being collected later.
  • A recent case of a refund followed by a code change prompted HMRC to highlight that unaccounted changes during the year can alter how much tax is due, with details viewable in the HMRC app or online account.