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Why and when you get a Pension Coding form P161

HM Revenue & Customs (HMRC) send you form P161 so that they can work out what tax-free allowances you're entitled to. They also work out how much tax (if any) you should be paying when you start to get your pension income. It’s important to return this form so that HMRC can work out how much tax you need to pay. If you don’t return it, you might pay too much tax.

As long as HMRC have your date of birth on record, they automatically send you the form the month before you reach State Pension age. Note that this is different from a letter you'll receive from The Pension Service inviting you to claim your State Pension.

If you're self-employed you won't automatically get form P161 sent to you. If you're within a month of reaching State Pension age and haven't received a form you can:

• fill in the form online - using the second link below
• download a copy, print it off and fill it in before returning to HMRC - using the third link below
• ask HMRC to send you a form
  

If you're unable to fill in the form online or download it, then please contact HMRC.

HMRC also re-send the P161 to you if you're a woman approaching your 65th birthday. They do this so that they can check if your circumstances have changed or whether you qualify for an increased age-related allowance.

• Income Tax Personal Allowance

• Fill in form P161 online Opens new window

• Form P161 'Pension Coding' and helpsheet Opens new window

Filling in form P161

The instructions below are for use when filling in a paper or downloaded version of the form. The online form has instructions available on the screen.

Your State Pension

You'll need to tell HMRC:

• whether or not you've decided to claim your State Pension now or put off claiming it (deferral)
• the date you expect payments to start 
• the expected weekly amount you will receive
• 
  

• Tax if you take your State Pension later on

Other pensions

You'll need to give details of any company pension or personal pensions you're receiving.

If you expect your pension to begin in this tax year - which runs from 6 April in one year to 5 April in the next - you should delay filling in and sending this form to HMRC until you have a date. If you don't expect the pension to begin this tax year you can carry on filling in this form.

If your pension has started, you'll find the pension number (or the 'pension annuity number') on your pension payslips or on letters from your pension provider.

There are certain situations where you might get a one-off lump sum pension payment rather than a regular pension income.

A triviality lump sum pension payment occurs when your total pension from an occupational scheme is small. In these cases the pension provider makes you a lump sum payment instead of regular payments.

A wind up lump sum pension payment occurs when an occupational scheme has been wound up. In this situation the pension provider makes you a lump sum payment instead of continuing your pension.

If either of these situations apply give details of the lump sum payment that you received before tax in the 'Other information' box on page 4. The tax deducted from the lump sum might be more than the tax you need to pay on it.

• Using the Pension Tracing Services

Income from taxable benefits

You'll need to state the full amount of any Jobseeker's Allowance, Incapacity Benefit or Employment and Support Allowance you get (this may count as taxable income). HMRC will be able to see from the date that it started how much, if any, is taxable. Follow the link below to find out more about taxable and non-taxable income.

Earnings from employment or self-employment

If you're still employed, you'll need to say how much income you're getting.

If you're self-employed and haven't completed a tax return, you'll need to give your estimated profits for the tax year. HMRC will know your income once they receive your tax return after the end of the tax year.

Savings income and any other taxable income

When filling in these sections, remember:

• ignore income that isn't taxable (see link below)
• show only half of any income you get in joint names, such as interest on a joint bank account

If you've sent a tax return for the last tax year, you don't need to fill in the above sections. HMRC will use your tax return to work out your income. Just fill in the box asking for your ten-figure tax reference - you'll find this on the front of your tax return.

• Taxable and non-taxable income at a glance

Charitable giving

Gift Aid increases the value of donations to charities and Community Amateur Sports Clubs (CASCs) by allowing them to reclaim basic rate tax on your gift. If you pay higher rate tax you can claim extra relief on your donations. If you claim age-related allowances, Gift Aid donations can sometimes increase your entitlement.

• Tax relief when giving to charity through Gift Aid

Returning the form

For paper versions of the form remember to sign and date your form and send it back as soon as possible, using the reply envelope you were sent with it. If you've downloaded a form, send it to the address found in the link below.

• Contact HMRC - Income Tax enquiries for individuals, pensioners and employees Opens new window

Useful links

• What to do if you can't pay your tax bill

• Do you have to pay tax in retirement?

• Age-related tax allowances

• Notifying your Tax Office when you retire Opens new window

Useful contacts

• Retirement contacts

• Financial advice and support contacts

• Over 50s contacts