HMRC explains how state pension tax works as retirees face confusion

HM Revenue and Customs (HMRC) has clarified a widespread misunderstanding surrounding state pension tax after many retirees were left confused by changes to their tax codes. Many pensioners who rely solely on their state pension have historically paid no tax on their Department for Work and Pensions (DWP) income, leading some to mistakenly believe the payments are tax-free. However, HMRC confirmed the state pension has always been taxable. The confusion stems from the way tax is collected on sta