I've spoken to HMRC and asked for my 1250L tax code to be assigned to my Pension.

As an Agency HGV Driver, my work is sporadic, haphazard and not guaranteed, so therefore my pension is my only guaranteed incone, falling just below the £12500 free-tax limit.
This means I pay 20% on everything I earn through Agency work, but I will get a rebate every April on taxed wages between pension & Tax code, throw that into Pension Pot #2 and I'm quids in!!!

26-yrs working to get my pension, then get taxed on it - Not for me - I've worked for my pension! I want it all!!! Max Commutation, then tax-free!
I'm beginning to consider myself "semi-retired" as I only do around 3 days a week of driving, yet still earn the same as I did when full-time RAF!

Go Figure!!!!!

When I left earlier in the year I thought I was lucky not to get one of the ‘October special’ letter. I’ve been lucky to do quite well and have ramped up my private pension contributions.
Curiosity got the better of me and I asked for a Statement of what was going into my ‘pension pot’ from Veterans U.K., ready for a tax return.
I’m surprised what the PIA amount is, the Pension Input Amount that goes into your pot is very significant! I didn’t have a private pension last year and didn’t breach the £40k allowance, but I will do this year.
I can utilise last year’s allowance so there’s no drama, but I will now have to revisit last year’s return to use the allowance- but also add the PIA from last year. Does anyone know if I will get tax relief on a PIA?

Sorry for the delay getting back to you on this. I had to ask the Team at HQ.All AFPS are unfunded and there is no ‘real ‘ pension pot that exists. For the purposes of Annual Allowance a method (devised by HMRC) is used to determine how much would have been contributed to achieve the increase in pension value over the year.There is no tax relief on the PIA (because it does not really exist). If you made any ‘real’ contributions such as ‘Added Pension’ where you purchased additional pension from your own income there will have been tax relief on those contributions.

The AFPRB take into account the fact that members of the Armed Forces do not contribute to their eventual pension. They are meant to find a civilian comparator job to set the salary. They then abate that by a percentage (used to be 7%, IIRC) from the "equivalent" civilian job salary. So, it is "non contributory", but allowed for in the pay scales.