P60 Update
P60s are now available!
P60s have now been issued to the printers for printing and posting. They are also now available to download from My Pension+ under 'Payslips and P60s'.
Changes in HMRC Allowances
In previous years there was a box on your P60 called “Lifetime Allowance Percentage”. There is now a new box instead, called “Lump Sum Allowance (£)”.
This is because of the removal of the Lifetime Allowance from pension tax legislation.
The Lifetime Allowance has been replaced by the Lump Sum Allowance (LSA) and the Lump Sum and Death Benefit Allowance (LSDBA) which were introduced on 6 April 2024. The maximum LSA is £268,275 and this represents the total amount you can take as tax free pension lump sums throughout your life.
If you took payment of your pension benefits after 5 April 2024 then any tax free lump sum was tested against this maximum LSA figure to decide if all of the lump sum could be paid tax free. A certificate was issued to you confirming the amount of the LSA that you used on taking your pension benefits. The amount on your P60 will confirm the LSA used by your pension benefits from the North East Scotland Pension Fund.
If you retired before 6 April 2006 and did not have a Lifetime Allowance Percentage, then you will not have a Lump Sum Allowance shown.
If you retired after 5 April 2006 but before 6 April 2024 and had a Lifetime Allowance Percentage, then your percentage has been converted to an amount of Lump Sum Allowance.
This is calculated as: £268,275 x [your Lifetime Allowance percentage]
Example
Member A retired on 31st December 2018 and used Lifetime Allowance percentage of 8.50%. This converts to £268,275 x 8.5% = £22,803.38. The P60 will therefore show 22,803.38 in the LSA box.
More information on the Lump Sum Allowance can be found on HMRC website. https://www.gov.uk/guidance/find-out-the-rules-around-individual-lump-sum-allowances