It’s important to check each year that you’ve paid the right amount of tax on the income you get.
This is especially important if you have a few different sources of income, such as:
- a part-time or full-time job
- bank or building society interest
- income or dividends from investments.
You also need to check if you have a change of circumstances that affects the income you get, for example, you retire from work and get a lower income.
If you’ve had more tax deducted than you should have paid, you can reclaim the difference from HMRC using one of their repayment claim forms.
Similarly, you might also have to pay any tax that’s been underpaid.
If you don’t have other sources of income, such as other pensions or income from a job, and you started getting your State Pension before April 2016, you’ll have to complete a Self Assessment tax return each year.
This is so HMRC can calculate and confirm the amount of tax that’s due on your State Pension.
You then need to pay this tax to HMRC. So it’s a good idea to make sure that you put enough to one side to meet the tax bill.
Again, if you’ve paid more tax than you should have, HMRC will refund the difference.