Main site > MoneySavingExpert.com Forums > Essential Money > Pensions, Annuities & Retirement Planning > Should I get an annual statement of my state pens... (Page 1)

IMPORTANT! This is MoneySavingExpert's open forum - anyone can post

Please exercise caution & report any spam, illegal, offensive, racist, libellous post to forumteam@moneysavingexpert.com

  • Be nice to all MoneySavers
  • All the best tips go in the MoneySavingExpert weekly email

    Plus all the new guides, deals & loopholes

  • No spam/referral links
or Login with Facebook
Should I get an annual statement of my state pension for my tax return?
Reply
Views: 5,037
Thread Tools Search this Thread Display Modes
# 1
usignuolo
Old 22-01-2012, 1:19 PM
Serious MoneySaving Fan
 
Join Date: Sep 2007
Posts: 1,918
Default Should I get an annual statement of my state pension for my tax return?

I retired in 2010 and I have both a state pension (enhanced from SERPS) and a Civil Service Pension. Neither the enhancement nor the CS Pension is very large but I still need to complete a self assessment tax form on which I have to put my income for the year.

I have assembled all the paperwork. The Civil Service Pension sent me a P60 in 2011 saying how much pension they paid me in the year ending march 2011. But I have not received any similar document in respect of my state pension service.

When I first claimed my state pension, I received a calculation of how much was due including SERPS entitlement less a sum reflecting any benefits from a contracted out scheme of which I was a member for a while. But nothing since.

More recently I received a letter from the CS scheme explaining how tax codes for the two schemes (state and CS would be offset as appropriate. But I have never received any documentation from the state scheme since that first estimate although I am being paid monthly and the amount looks about right

So short of adding up my individual bank statements which reflect state pension after tax, I do not know how much it actually was for the year. I know this sounds daft but the letter with the quotation they originally sent me had all sorts of small amounts on it, additions and deductions and i think there was a small state increase announced last year. The monthly amount I am now getting from the state scheme does differ slightly from the original estimate but that may be due to changed tax codes.

Should I receive an annual statement in P60 or other form of how much state pension I have received, to enter on my tax return? Or do I have to go through all my bank statements for the year and add it up (which will of course be the after tax figure)?

Last edited by usignuolo; 22-01-2012 at 1:21 PM.
usignuolo is offline
Reply With Quote Report Post
# 2
BoGoF
Old 22-01-2012, 1:24 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Jul 2007
Posts: 2,327
Default

No you don't get a P60 and as it isn't taxed at source you don't have to worry about that.
BoGoF is offline
Reply With Quote Report Post
The Following User Says Thank You to BoGoF For This Useful Post: Show me >>
# 3
jem16
Old 22-01-2012, 1:25 PM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: Aug 2005
Location: South Lanarkshire
Posts: 15,232
Default

Quote:
Originally Posted by usignuolo View Post
Should I receive an annual statement in P60 or other form of how much state pension I have received, to enter on my tax return?
State pensions or any other benefits are not recorded on a P60.

Quote:
Or do I have to go through all my bank statements for the year and add it up (which will of course be the after tax figure)?
Your state pension is paid to you gross. The tax is taken via your CS pension by a tax code reduction.

So yes you simply add up the amount you have been paid.
jem16 is offline
Reply With Quote Report Post
The Following User Says Thank You to jem16 For This Useful Post: Show me >>
# 4
le loup
Old 22-01-2012, 1:26 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Jul 2010
Posts: 2,608
Default

.... or take it from your Notice of Coding.
le loup is offline
Reply With Quote Report Post
The Following User Says Thank You to le loup For This Useful Post: Show me >>
# 5
patanne
Old 22-01-2012, 1:34 PM
MoneySaving Stalwart
 
Join Date: Apr 2009
Posts: 704
Default

The problem with the state pension is that you pay the tax for the period due not for the period received. I received no SP in the last financial year but did receive the first 4 weeks 2 weeks into the new tax year. I have just recently received a tax bill for the 2 weeks for the end of March. This does not happen if you are paid it weekly. I wish I'd known that at the time, I'd have asked to have it done weekly. It seems the only way you can find out is by asking HMRC what the DWP reported to them!! A nightmare.
patanne is online now
Reply With Quote Report Post
# 6
bigfreddiel
Old 22-01-2012, 9:51 PM
Serious MoneySaving Fan
 
Join Date: Jan 2007
Posts: 1,764
Default

"..........Neither the enhancement nor the CS Pension is very large but I still need to complete a self assessment tax form................."


are your pensions taking you into the higher rate tax bracket,or do you have some other source of income - if not you have no need to enter a tax return.

Last edited by bigfreddiel; 22-01-2012 at 9:54 PM.
bigfreddiel is offline
Reply With Quote Report Post
# 7
patanne
Old 22-01-2012, 9:59 PM
MoneySaving Stalwart
 
Join Date: Apr 2009
Posts: 704
Default

With pensions you may need to if it takes you over £24k as they start clawing back the over 65 tax code. There are also problems with the K code they sometimes need to issue if your income is not a fixed amount or ( this is where it can get complicated like mine) where half your private pension is not enough to pay all the tax on your private pension and state pension.
patanne is online now
Reply With Quote Report Post
# 8
jem16
Old 22-01-2012, 10:03 PM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: Aug 2005
Location: South Lanarkshire
Posts: 15,232
Default

Quote:
Originally Posted by bigfreddiel View Post
are your pensions taking you into the higher rate tax bracket,or do you have some other source of income - if not you have no need to enter a tax return.
My father has no other income apart from his state pension and occupational pension. He still receives the short tax return each year.
jem16 is offline
Reply With Quote Report Post
# 9
kidmugsy
Old 22-01-2012, 10:46 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Feb 2011
Posts: 5,099
Default

You get your state pension gross. Following the advice of an accountant friend, on the tax return I just enter my weekly state pension multiplied by 52.
kidmugsy is offline
Reply With Quote Report Post
# 10
gillybeanmc
Old 22-01-2013, 1:49 PM
MoneySaving Newbie
 
Join Date: Jan 2013
Posts: 2
Default

Can I go back to the original question, do they issue an annual statement of the state pension. I am trying to borrow some money for a small mortgage & have been asked to supply a statement of earnings from them.
gillybeanmc is offline
Reply With Quote Report Post
# 11
kidmugsy
Old 22-01-2013, 2:25 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Feb 2011
Posts: 5,099
Default

Quote:
Originally Posted by gillybeanmc View Post
do they issue an annual statement of the state pension
I've never had a statement of what I have received, but you do get a letter stating how much they are going to give you in the new tax year. That should do the trick, shouldn't it?
kidmugsy is offline
Reply With Quote Report Post
# 12
dzug1
Old 22-01-2013, 2:30 PM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: May 2008
Posts: 12,759
Default

Quote:
Originally Posted by gillybeanmc View Post
Can I go back to the original question, do they issue an annual statement of the state pension. I am trying to borrow some money for a small mortgage & have been asked to supply a statement of earnings from them.
No they don't - just an annual letter telling you how much it is per week for the next year. The mortgage company is capable of multiplying by 52 surely.
dzug1 is offline
Reply With Quote Report Post
# 13
xylophone
Old 22-01-2013, 2:35 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Aug 2008
Posts: 9,749
Default

http://www.hmrc.gov.uk/manuals/eimanual/eim76005.htm
"Payments not made weekly
Claimants can choose to receive some benefits (for example, the State pension) every four or thirteen weeks in arrears, rather than receiving the benefit each week.

Depending on payment dates, an individual who chooses to receive the State pension every 4 weeks in arrears, may receive 14 payments in a year (equivalent to 56 weeks benefit) but for income tax purposes the individual remains taxable to the 52 weeks pension entitlement that arose during the tax year ended on 5 April.

In the following year the individual may receive 12 payments equivalent to only 48 weeks entitlement but the taxable benefit will again be the 52 weeks entitlement.

The correct taxable amount is always the figure of weekly entitlement."
xylophone is offline
Reply With Quote Report Post
# 14
gillybeanmc
Old 22-01-2013, 2:51 PM
MoneySaving Newbie
 
Join Date: Jan 2013
Posts: 2
Default

Thanks for the replies, they will just have to use their calculators.
gillybeanmc is offline
Reply With Quote Report Post
The Following User Says Thank You to gillybeanmc For This Useful Post: Show me >>
# 15
Marmaduke123
Old 22-01-2013, 3:00 PM
MoneySaving Stalwart
 
Join Date: Jan 2006
Posts: 227
Default

No need to make it too complicated. The letter you get each year tells you how much you will receive per week for the forthcoming tax year.

You just need to multiply that figure by 52 to get the annual amount, no matter whether you actually receive the money 4 weekly or weekly.
Marmaduke123 is offline
Reply With Quote Report Post
# 16
le loup
Old 22-01-2013, 3:43 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Jul 2010
Posts: 2,608
Default

........ and the Pensions Service will give you a tax year statement if you ask them. I have one in front of me now.
le loup is offline
Reply With Quote Report Post
Reply

Bookmarks
 
 




Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

 Forum Jump  

Contact Us - MoneySavingExpert.com - Archive - Privacy Statement - Top

Powered by vBulletin® Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.

All times are GMT. The time now is 11:53 PM.

 Forum Jump  

Free MoneySaving Email

Top deals: Week of 29 October 2014

Get all this & more in MoneySavingExpert's weekly email full of guides, vouchers and Deals

GET THIS FREE WEEKLY EMAIL Full of deals, guides & it's spam free

Latest News & Blogs

Martin's Twitter Feed

profile

Cheap Travel Money

Find the best online rate for holiday cash with MSE's TravelMoneyMax.

Find the best online rate for your holiday cash with MoneySavingExpert's TravelMoneyMax.

TuneChecker Top Albums

  • VARIOUS ARTISTSBBC RADIO 1'S LIVE LOUNGE 2014
  • TAYLOR SWIFT1989 (DELUXE)
  • ED SHEERANX (DELUXE EDITION)

MSE's Twitter Feed

profile
Always remember anyone can post on the MSE forums, so it can be very different from our opinion.
We use Skimlinks and other affiliated links in some of our boards, for some of our users.