New Tax Confident website will help you understand tax rules in retirement

A new HMRC website has been designed to help people understand how tax works when they retire.

Whether you’re approaching retirement, already retired, or planning ahead, Tax Confident offers a wealth of practical information, videos, articles, and examples to help make the tax rules in retirement easier to follow.

From understanding how your State Pension is taxed, to learning about allowances for savings, dividends, and inheritance, Tax Confident provides clear answers to common questions.

The website also explains how tax is collected, including Pay As You Earn, Self Assessment, and Simple Assessment options, so you can manage your finances with confidence.

Here are answers to some questions you might have...

How will my tax be calculated in retirement?
In retirement, you might receive income from multiple sources such as your State Pension, workplace or private pensions, rented property, or self-employment. Some of your income is tax-free; this is known as your Personal Allowance, which for most people is currently £12,570 per year. Any income above that is taxed at rates depending on your total taxable income.

Does my State Pension count as taxable income?
Yes. The State Pension counts towards your total income, so it is taxable if your income exceeds your Personal Allowance. Your State Pension is paid without tax taken off and counts towards your Personal Allowance.

If you also have workplace or private pensions, interest from savings, or income from part-time work, the total may exceed your Personal Allowance. You only pay tax on the income above that allowance.

Will I still pay National Insurance?
No. Once you reach State Pension age, you won’t be charged National Insurance, even if you continue working.

How