u/cja59uk

I retired about six years ago and have been living on my local government pension and drawing an amount from Royal London pension pot. I am taxed on the LG pension and take £1000 a month from my RL pot - £250 tax free and the rest taxed at 20% (£850 in total). I'm also using part of my wife's tax allowance as she doesn't yet pay tax. I started getting my state pension last December and I assumed that my LG pension would be reduced as that would soak up my tax allowance but that hasn't happened. According to my calculations my LG pension should be about £200 lower. When I looked yesterday at the HMRC website at my PAYE it showed that they added my pension in December and then took it off the calculations in January. What's going on?