Why is it that I still have to pay income tax on my police pension ?. I served for thirty years before retiring in 1990 and still have to pay income tax, even though I paid all my dues and demands concerning income tax when I was a serving officer.
The pension contributions were tax free when you paid them. Now you get state pension and a police pension so your income is over the tax threshold and you pay income tax. A pension is no different to any other income as far as tax is concerned, but at least you no longer pay National Insurance.