How to find annual state pension income for tax purposes?

zygurat789

CLAPTON wrote: »

thanks for that

as I understand it new pensioners have no choice other than 4 weekly

No. The choice is for 1,2 or 4 weekly but not monthly.

jennifernil

zygurat789 wrote: »

No. This is paid as a separate item as is the WFA.

On both our state pensions, the £10 was added to our weekly amount and paid in as one total amount, not shown separately.

CLAPTON

zygurat789 wrote: »

No. The choice is for 1,2 or 4 weekly but not monthly.

are you sure that this is still true?

zygurat789

CLAPTON wrote: »

are you sure that this is still true?

As of September 2010. Yes
Confirmed 11/01/11 17:45 08007317898

zygurat789

jennifernil wrote: »

On both our state pensions, the £10 was added to our weekly amount and paid in as one total amount, not shown separately.

But shown separate to the 4 weekly amount (twice)

anmarj

zygurat789 wrote: »

But shown separate to the 4 weekly amount (twice)

if the state pension is paid 4 weekly then the xmas bonus will be shown seperatley as this is issued as a single payment, if people are paid weekly then it will be paid as part of that weeks entitlement.

state pension don't issue p60 as they are not paying a tax to the IR, that is why they don't do it. if somebody wants to find out all they have to do is look at when the pension uprates, they may have one payment at the old rate and then 51 payments at the new rate when going by the tax year 6 april to 5 april.

state pension has never paid monthly. the options are as follows - default is 4 weekly, but customer can request a weekly payments, payments can be made fortnighly if following on from a benefit that paid fortnighly ie incapacity benefit this was introudced to help the move more easily.

Mikeyorks

anmarj wrote: »

. the options are as follows - default is 4 weekly, but customer can request a weekly payments, payments can be made fortnighly if following on from a benefit that paid fortnighly ie incapacity benefit this was introudced to help the move more easily.

Yes - the BR1 pension application no longer has an option of requesting a specific time period. And there's a cryptic note in the area where Bank details are placed to indicate 'we normally pay your benefit every 4 weeks'.
If the weekly option is still available .... it's pretty well hidden, as it no longer appears to figure in the copious notes.

dzug1

zygurat789 wrote: »

No. This is paid as a separate item as is the WFA.

Nope - not universally. MIL's bonus went in to her PO account as a single payment added to her weekly pension.

Mine went in separately between (4 weekly) pension days

So I suspect it is paid on a particular date. If that coincides with a pension payment - one payment. If it doesn't - separate.

Whether WFA's the same - don't know. It's always been a different day so no evidence

kulath

Mikeyorks wrote: »

The State Pension is taxed on an accrual not a payment basis. So you're taxed on what you're entitled to in the year. Which will not be the same as you're paid - if you have any payment method other than weekly.

Thanks for that - accrual not payment basis sounds definitive. Can you tell me where it says this, or where you got the information from.

I get paid on a Monday. This tax year has two odd days at the end: Mon 4th and Tues 5th 2011, so should that week be included in the accrual or not? (It makes a diffeernce because I have just started to receive the payements this year)

Mikeyorks

kulath wrote: »

Thanks for that - accrual not payment basis sounds definitive. Can you tell me where it says this, or where you got the information from.

The link I provided at post #9? The final para tends to describe it as the 'arising' basis rather than 'accrual' .... but they're the same thing :

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

This tax year has two odd days at the end: Mon 4th and Tues 5th 2011, so should that week be included in the accrual or not? (It makes a diffeernce because I have just started to receive the payements this year

You received a start up document from the Pensions service shortly before the payments started? It normally gives the payment dates for the first two payments? That will clarify when your entitlement started? If that's a Mon or Tue ............ then, yes, that will add the 'extra' week to 10-11.