Just received my first pension payment. However, it is a little confused as it looks as though it has been taxed (being September I won't be needing to pay tax this tax year - I have not been earning in the UK fir the last 3 years) To add to the confusion I have received a letter from TP notifying me of a tax code change from next month resulting in a £76 tax refund. The Tax code is 1204L. Questions: 1. Do you get a pension 'pay slip' through the post? I haven't seen one. It may help to explain what they have done. 2. Why tax code of 1204L. To my mind that means a lower tax threshold than standard (1250L), How does that create a tax refund? £76 per month refund will equal more than I seem to have had deducted from my first payment. Are there other deductions?