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Profit, employment and pension income / earned income. Earned income consists of income chargeable under the Income Tax (Earnings and Pensions) Act 2003, such as pay, private and occupational pensions, retirement annuities, state retirement pensions and taxable social security income.
When you get money from a pension you pay tax on any income above your tax-free Personal Allowance. How much Income Tax you pay depends on the tax rate that applies to you. Your income includes: 1  the State Pension. 2  money from private pensions (workplace, personal, stakeholder). 3  earnings from employment or self employment. 4  any taxable benefits you might get. 5  any other income, money from investments, property, savings.