Skip to main content
N I Direct government services

Main navigation

  • Home
  • News
  • Contacts
  • Help
  • Twitter
  • Facebook
  • YouTube
  • RSS

Breadcrumb

  1. Home
  2. Pensions and retirement planning

Tax and allowances in retirement

Find out about paying tax if you have retired or receive a pension, and learn about the range of allowances and help that is available.

Income tax rates and personal allowances

As you get older there are age-related allowances that can reduce how much tax you pay. Some allowances are income amounts which aren't taxed. Other allowances reduce your tax bill.

  • Income Tax rates and Personal Allowances - GOV.UK

Tax when you get a pension

When you get money from a pension you pay tax on any income above your tax-free Personal Allowance.  How much Income Tax you pay depends on the tax rate that applies to you.

  • Tax when you get a pension - GOV.UK
  • Tax on your private pension contributions - GOV.UK
  • Tax on a private pension you inherit - GOV.UK
  • The new State Pension - GOV.UK
  • Pension scheme administration  - GOV.UK
  • Contact HMRC - GOV.UK

Tax relief on pension contributions

The government encourages you to save for your retirement by giving you tax relief on pension contributions. Tax relief reduces your tax bill or increases your pension fund.

  • Workplace pensions and tax relief

Tax on savings interest

Most people can earn some income from their savings without paying tax. This is called a Personal Savings Allowance which applies to each tax year, from 6 April to 5 April the following year.

  • Tax on savings interest - GOV.UK

Reclaiming overpaid tax on savings

If you think you've paid tax on your savings interest when you didn't need to, or paid more than you should have, you can claim it back. You can download form R40 to do this,  or contact your local tax office or the HMRC Office.

  • Claim for repayment of tax deducted from savings and investments (R40) - GOV.UK
  • Income tax: general enquiries  - GOV.UK

Tax on dividends

You may get a dividend payment if you own shares in a company.

  • Tax on dividends - GOV.UK

National Insurance contributions

Find out about your National Insurance contributions If you’re employed,  or self-employed when you reach State Pension age. 

  • National Insurance after State Pension age
  • National Insurance and tax after State Pension age - GOV.UK
  • National Insurance - GOV.UK
  • Claim a National Insurance refund- GOV.UK

Blind Person's Allowance

If you're registered as blind you can claim Blind Person's Allowance. This is an amount of income you can get without paying tax.

  • Blind person's allowance - GOV.UK

Married Couple's Allowance (includes civil partnerships)

Find out if you can claim Married Couple's Allowance if you are married or in a civil partnership.

  • Married Couple's Allowance - GOV.UK

Maintenance Payments Relief

Maintenance Payments Relief reduces your Income Tax if you make maintenance payments to an ex-spouse or civil partner.

  • Maintenance payments: tax reliefs - GOV.UK

Tax if you're employed and getting a pension

When you get money from a pension you pay tax on any income above your tax-free Personal Allowance.

  • Tax when you get a pension - GOV.UK
  • Income Tax rates and Personal Allowances - GOV.UK
  • Tax codes - GOV.UK
  • Tax overpayments and underpayments - GOV.UK
  • Self Assessment - GOV.UK

Retired but starting a new job

If you start a new job after retiring, your employer will need to tell HMRC so they can make sure that you're paying the right tax.

  • Contact HMRC  - GOV.UK

Tax if you're self-employed and getting a pension

If you're self-employed and getting one or more pensions as well as the State Pension, you'll pay tax in a number of different ways.

  • Self-Assessment tax returns - GOV.UK
  • Tax overpayments and underpayments - GOV.UK
  • Self Assessment - nibusinessinfo.co.uk
  • Tax when you get a pension - GOV.UK
  • National Insurance after State Pension age

Becoming self-employed for the first time

If you start working for yourself, you’re classed as a sole trader - even if you haven’t yet told HM Revenue and Customs (HMRC). You must register and follow the rules for self-employed tax and National Insurance.

  • Working for yourself - GOV.UK

If you're self-employed and worried that you're paying too much tax or if you have any other questions about tax and self-employment after State Pension age, you can contact your Tax Office. 

  • HM Revenue & Customs (HMRC)

Or, if you're newly self-employed, you can call the Newly Self-Employed Helpline.

  • phone: 0845 915 4655 (lines are open from 8.00 am to 5.00 pm Monday to Friday)
  • Contacting 08 and 03 numbers

Working or self-employed and on a low income

If you're earning a wage and receiving a pension or you're self-employed and you get a pension but have a low income, you may be able to claim Pension Credit.

  • Understanding Pension Credit

If you think you're paying too much tax

If you think you're paying too much tax or shouldn't be paying tax at all, you may be able to claim a tax refund.

  • Claim a tax refund  - GOV.UK

Appointing someone to deal with HMRC on your behalf

You can allow someone else to deal with HM Revenue and Customs (HMRC) for you, for example, an accountant, friend or relative.

  • Appoint someone to deal with HMRC on your behalf​ - GOV.UK

Tax if you leave the UK to live abroad

You must tell HM Revenue and Customs (HMRC) if you are leaving the UK to live abroad permanently or you’re going to work abroad full-time for at least one full tax year.

  • Tax if you leave the UK to live abroad - GOV.UK
  • Income Tax: leaving the UK - getting your tax right (P85) - GOV.UK

Paying tax if you retire in NI after living abroad

Find out if you need to pay UK Income Tax on your foreign income, including income from pensions held overseas.

  • Tax on foreign income - GOV.UK
  • Pensions: report a change in your circumstances
  • Moving back to Northern Ireland from abroad

Contacting your tax office

HM Revenue & Customs (HMRC) is responsible for collecting, paying, administering and enforcing taxes. 

  • HM Revenue & Customs (HMRC)

Help and advice

The organisations below can provide you with free, independent tax advice. The list isn't exhaustive and the links are to external organisations which are not managed by HMRC.

  • Tax Help for Older People
  • Taxaid
  • Advice NI
  • 'Money matters' on the ageNI website
  • Tax allowances for pensioners 

 

More useful links

  • Support to stay in your own home
  • Pension Tracing Service
  • Non-resident trusts guidance - GOV.UK
Share this page Share on Facebook (external link opens in a new window / tab) Share on Twitter (external link opens in a new window / tab) Share by email (external link opens in a new window / tab)

Pensions and retirement planning

  • Benefits and concessions in retirement
  • Health and wellbeing in retirement
  • Home, care and community
  • Pension Credit
  • Personal and stakeholder pensions
  • Retirement planning
  • State Pension
  • Tax and allowances in retirement
  • Workplace pensions

Translation help

How to translate this page

Help improve this page - send your feedback

What do you want to do?
Report a problem
Which problem did you find on this page? (Tick all that apply)

Messages

You will not receive a reply. We will consider your feedback to help improve the site.

Don't include any personal or financial information, for example National Insurance, credit card numbers, or phone numbers.

What is your question about?

What to do next

Comments or queries about angling can be emailed to anglingcorrespondence@daera-ni.gov.uk 

If you have a comment or query about benefits, you will need to contact the government department or agency which handles that benefit.  Contacts for common benefits are listed below.

Carer's Allowance

Call 0800 587 0912
Email 
dcs.incomingpostteamdhc2@nissa.gsi.gov.uk

Discretionary support / Short-term benefit advance

Call 0800 587 2750 
Email 
customerservice.unit@communities-ni.gov.uk

Disability Living Allowance

Call 0800 587 0912 
Email dcs.incomingpostteamdhc2@nissa.gsi.gov.uk

Employment and Support Allowance

Call 0800 587 1377

Jobseeker’s Allowance

Contact your local Jobs & Benefits office

Personal Independence Payment

Call 0800 587 0932

If your query is about another benefit, select ‘Other’ from the drop-down menu above.

Comments or queries about the Blue Badge scheme can be emailed to bluebadges@infrastructure-ni.gov.uk or you can also call 0300 200 7818.

For queries or advice about careers, contact the Careers Service.

For queries or advice about Child Maintenance, contact the Child Maintenance Service.

For queries or advice about claiming compensation due to a road problem, contact DFI Roads claim unit.

If you can’t find the information you’re looking for in the Coronavirus (COVID-19) section, then for queries about:

  • Restrictions or regulations — contact the Department of Health
  • Travel advice (including self-isolation) — contact the Department of Health
  • Coronavirus (COVID-19) vaccinations — contact the Department of Health or Public Health Agency

If your query is about another topic, select ‘Other’ from the drop-down menu above.

For queries about your identity check, email nida@nidirect.gov.uk and for queries about your certificate, email covidcertni@hscni.net.

For queries or advice about criminal record checks, email ani@accessni.gov.uk

Application and payment queries can be emailed to ema_ni@slc.co.uk

For queries or advice about employment rights, contact the Labour Relations Agency.

For queries or advice about birth, death, marriage and civil partnership certificates and research, contact the General Register Office Northern Ireland (GRONI) by email gro_nisra@finance-ni.gov.uk

For queries about the High Street Spend Local Scheme,  email HSSS.mail@economy-ni.gov.uk.

For queries about:

  • Car tax, vehicle registration and SORN
    contact the Driver and Vehicle Licensing Agency (DVLA), Swansea
     
  • Driver licensing and tests, MOT and vehicle testing
    contact the Driver & Vehicle Agency (DVA), Northern Ireland

If your query is about another topic, select ‘Other’ from the drop-down menu above.

For queries about your identity check, email nida@nidirect.gov.uk.

 

For queries or advice about passports, contact HM Passport Office.

For queries or advice about Penalty Charge Notices (PCNs), including parking tickets and bus lane PCNs, email dcu@infrastructure-ni.gov.uk

For queries or advice about pensions, contact the Northern Ireland Pension Centre.

If you wish to report a problem with a road or street you can do so online in this section.

If you wish to check on a problem or fault you have already reported, contact DfI Roads.

For queries or advice about historical, social or cultural records relating to Northern Ireland, use the Public Record Office of Northern Ireland (PRONI) enquiry service.

For queries or advice about rates, email LPSCustomerTeam@lpsni.gov.uk

For queries or advice about  60+ and Senior Citizen SmartPasses (which can be used to get concessionary travel on public transport), contact Smartpass - Translink.

If you have a question about a government service or policy, you should contact the relevant government organisation directly.  We don't have access to information about you.

Related sites

  • gov.uk
  • nibusinessinfo.co.uk

Links to supporting information

  • Accessibility statement
  • Crown copyright
  • Terms and conditions
  • Privacy
  • Cookies
  • Twitter
  • Facebook
  • YouTube
  • RSS