What this tool does

This tool estimates the income tax you will pay on your pension, taking account of your tax-free personal allowance and the 25 percent tax-free lump sum, so you can see what you will actually take home.

It gives an estimate for guidance only, based on current rates, and is not a substitute for advice from HMRC or a financial adviser.

When to use it

Use it when you are planning your retirement income, deciding when and how to draw a pension, working out whether a lump sum tips you into a higher tax band, or checking that a tax code looks about right.

How it works

You enter your annual pension income, any other taxable income, whether you receive the State Pension and whether you are taking your tax-free lump sum. It applies the current personal allowance and tax bands and shows your estimated tax and net income in plain English. Nothing you enter is saved, and you do not need to give your name or email to use it. Tax rates change and Scottish bands differ, so confirm anything important before you rely on it.