Payments and tax

Get clear information on how your retirement income is paid and taxed to help you plan ahead.
  • DC Scheme
  • DB Scheme

DC Scheme

When you retire as a DC member, an option is to use your pension pot to buy an annuity from an insurance company. This annuity then pays you a regular income for life (or for a set term, depending on the product you choose). The pension is not paid by Wincanton the Company, Capita or the Wincanton Pension Scheme, but by your chosen insurer.

How your annuity is taxed

Just like earnings from employment or a DB pension being paid, annuity payments are taxed under Pay As You Earn (PAYE). That means the insurance company will deduct tax before making your payment.

Here’s what affects your tax:

  • Your tax code, set by HMRC
  • The amount of income your annuity pays
  • Other sources of income (like the State Pension, rental income, or other pensions)
  • The government’s personal allowance

Your tax code

HMRC provides your tax code to the annuity provider. It’s important to check that it’s correct—especially when your income changes—so you don’t overpay or underpay tax.

You can:

  • Find your tax code on your annuity payslip or your P60
  • Contact HMRC directly if you think it’s wrong or if your circumstances change

Visit Gov tax codes or call HMRC to review or update your tax code.

When are annuity payments made?

Payment dates and frequency depend on the insurance company and the annuity product you choose.

Most annuities pay monthly, but some pay quarterly or annually. Check your annuity policy or contact your provider for exact payment dates.

How your lump sums are taxed

If you choose to take lump sums from your pension pot instead of using it to purchase an annuity, these will be paid to you directly by Capita.

If you take a lump sum you many need to take financial advice to ensure your tax treatment is correct.

Once you retire, your Wincanton pension is paid to you monthly by Capita on behalf of the Wincanton Pension Scheme (not by Wincanton directly). These payments work just like a salary in that they are taxed under Pay As You Earn (PAYE).

Here’s what affects your tax:

  • Your tax code (set by HMRC)
  • Your Wincanton pension payments
  • Other income (like State Pension, rental income, or other pensions)
  • The personal allowance set by the government

Your tax code is provided by HMRC, and it’s essential to check that it’s correct to avoid overpaying or underpaying tax. If you think your tax code is incorrect you can contact HMRC directly to request a review. 

Check your tax code

You’ll find your tax code on your payslip or P60. If it looks wrong, contact HMRC to ask for a review. They’ll update it if your income changes.

Payroll calendar

Your pension will be paid in advance on the following dates.

Payroll calendar 2025/26
1 May 2025 30 May 2025 1 July 2025 1 August 2025
1 September 2025 1 October 2025 31 October 2025 1 December 2025
31 December 2025 30 January 2026 27 February 2026 1 April 2026

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