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  • FIRST POST
    usignuolo
    Should I get an annual statement of my state pension for my tax return?
    • #1
    • 22nd Jan 12, 1:19 PM
    Should I get an annual statement of my state pension for my tax return? 22nd Jan 12 at 1:19 PM
    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.
Page 1
    • BoGoF
    • By BoGoF 22nd Jan 12, 1:24 PM
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    BoGoF
    • #2
    • 22nd Jan 12, 1:24 PM
    • #2
    • 22nd Jan 12, 1:24 PM
    No you don't get a P60 and as it isn't taxed at source you don't have to worry about that.
    • jem16
    • By jem16 22nd Jan 12, 1:25 PM
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    jem16
    • #3
    • 22nd Jan 12, 1:25 PM
    • #3
    • 22nd Jan 12, 1:25 PM
    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?
    Originally posted by usignuolo
    State pensions or any other benefits are not recorded on a P60.

    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.
    • le loup
    • By le loup 22nd Jan 12, 1:26 PM
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    le loup
    • #4
    • 22nd Jan 12, 1:26 PM
    • #4
    • 22nd Jan 12, 1:26 PM
    .... or take it from your Notice of Coding.
    • patanne
    • By patanne 22nd Jan 12, 1:34 PM
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    patanne
    • #5
    • 22nd Jan 12, 1:34 PM
    • #5
    • 22nd Jan 12, 1:34 PM
    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.
    • bigfreddiel
    • By bigfreddiel 22nd Jan 12, 9:51 PM
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    bigfreddiel
    • #6
    • 22nd Jan 12, 9:51 PM
    • #6
    • 22nd Jan 12, 9:51 PM
    "..........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.
    • patanne
    • By patanne 22nd Jan 12, 9:59 PM
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    patanne
    • #7
    • 22nd Jan 12, 9:59 PM
    • #7
    • 22nd Jan 12, 9:59 PM
    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.
    • jem16
    • By jem16 22nd Jan 12, 10:03 PM
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    jem16
    • #8
    • 22nd Jan 12, 10:03 PM
    • #8
    • 22nd Jan 12, 10:03 PM
    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.
    Originally posted by bigfreddiel
    My father has no other income apart from his state pension and occupational pension. He still receives the short tax return each year.
    • kidmugsy
    • By kidmugsy 22nd Jan 12, 10:46 PM
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    kidmugsy
    • #9
    • 22nd Jan 12, 10:46 PM
    • #9
    • 22nd Jan 12, 10:46 PM
    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.
  • gillybeanmc
    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.
    • kidmugsy
    • By kidmugsy 22nd Jan 13, 2:25 PM
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    kidmugsy
    do they issue an annual statement of the state pension
    Originally posted by gillybeanmc
    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?
    • dzug1
    • By dzug1 22nd Jan 13, 2:30 PM
    • 13,364 Posts
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    dzug1
    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.
    Originally posted by gillybeanmc
    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.
    • xylophone
    • By xylophone 22nd Jan 13, 2:35 PM
    • 19,216 Posts
    • 10,927 Thanks
    xylophone
    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."
  • gillybeanmc
    Thanks for the replies, they will just have to use their calculators.
    • Marmaduke123
    • By Marmaduke123 22nd Jan 13, 3:00 PM
    • 377 Posts
    • 361 Thanks
    Marmaduke123
    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.
    • le loup
    • By le loup 22nd Jan 13, 3:43 PM
    • 3,373 Posts
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    le loup
    ........ and the Pensions Service will give you a tax year statement if you ask them. I have one in front of me now.
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