We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Tax on pension paid in arrears

Options
Hello;
My mum died in March 2010. I then found that she had been underpaid her Civil Service Pension for 11 years. This has now been sorted-out and they have paid £4902 into her estate. That amount is £5694 gross, less £792 income tax. They deducted income tax as if the whole amount was income in 2009/10.
The question is -
Should income which is paid late, in this case very late, be taxed as income in the year it is received, or as income in the year(s) that it applies to?
If I calculate the tax liabilities for each year, the estate is due a refund of just over £500, not an inconsiderable sum.
The HMRC site is silent on this issue.
Help appreciated,
Wyliam

Comments

  • wyliam
    wyliam Posts: 13 Forumite
    Thanks muchly jimmo
    I just knew someone would know where the answer is.
    How did you find it when hours of searching and reading hmrc.gov.uk failed to come up with that?
    --
    Wyliam
  • jimmo
    jimmo Posts: 2,287 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    wyliam wrote: »
    How did you find it when hours of searching and reading hmrc.gov.uk failed to come up with that?
    --
    Wyliam
    37 years experience as a taxman.
    With or without the internet there is no substitute for knowing where to look it up.
    Mind you, on any website other than HMRC I am like a fish out of water so rely heavily on MSE when I need to.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 244K Work, Benefits & Business
  • 598.9K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.