State Pension Tax Position

unicorn77

War Hero
Any tax experts in?

I am in dispute with HMRC over the amount of State Pension they have included in my 18/19 tax calculation. They say it has to be 28 weeks (to be fair to all pensioners) but that is not what I actually received because the last 4-weekly amount was paid on 11th April, i.e. in the 19/20 tax year. I say that flys in the face of the basic principle of whatever you receive IN a tax year being attributed to that tax year, no matter what period it relates to (i.e backpay, holiday pay, etc.). Am I right?
 
Any tax experts in?

I am in dispute with HMRC over the amount of State Pension they have included in my 18/19 tax calculation. They say it has to be 28 weeks (to be fair to all pensioners) but that is not what I actually received because the last 4-weekly amount was paid on 11th April, i.e. in the 19/20 tax year. I say that flys in the face of the basic principle of whatever you receive IN a tax year being attributed to that tax year, no matter what period it relates to (i.e backpay, holiday pay, etc.). Am I right?
Your state pension is, I believe, paid four weeks in arrears... could that be why HMRC has included it?

Somebody like @Bravo_Bravo may know the score on matters pension related.
 
Your state pension is, I believe, paid four weeks in arrears... could that be why HMRC has included it?

Somebody like @Bravo_Bravo may know the score on matters pension related.
This is more of a tax issue, really but I would expect that it will all come out in the wash - if the OP is taxed on £ this year, he won't get taxed on it next year...
 

unicorn77

War Hero
I am right. Well, HMRC haven't said so in so many words, just agreed to use my figures, which implies that they were previously talking bs.
 

drknot

Old-Salt
Most income is based on a receipt basis, ie when you receive it, you are taxed on it.

State pension is taxed on a entitlement basis, ie when you are entitled to it, you are taxed on it regardless of when it is paid.

Due to the current rules of we can't be arsed to check, then the person who took your information, either over the phone or in letter, just updated the system with the new figure providing the difference was within a reasonable tolerance and moved onto the next one, not caring one bit.
 

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