How to calculate a tax year's pension

fluffig

I have power of attorney for my father and want to check that his tax codes have been correct and so that the tax he has paid on his occupational pension for the past 6 years has been correct. He had kept his P60 figures for his occupational pension, but nothing from the DWP, so I wrote to them asking for his pension received figure for each of the last 6 tax years.

In response they have instead sent me weekly pension rates from given dates :
11/04/05 - 09/04/06 £99.87
10/04/06 - 08/04/07 £103.36
09/04/07 - 06/04/08 £108.21
07/04/08 - 05/04/09 £113.67
06/04/09 - 13/12/09 £121.04
14/12/09 - 11/04/10 £123.69
12/04/10 - 10/04/11 £123.69

How do I turn those into what he actually received during each tax year from DWP ? (My maths is not good )

le_loup

52 weeks in a year.

fluffig

le_loup wrote: »

52 weeks in a year.

Yes - or is it 52.14325 ? Also the dates they've given aren't the exact start and end dates of each tax year.

I'd like my calculations to be as accurate as possible.

dzug1

The taxman likes it to be exact- so it's either 52 or 53 weeks in a year depending on where pension day falls in relation to the end of the tax year

Having said that he normally has the correct figure, direct from the DWP, anyway

jem16

nihtevert wrote: »

Yes - or is it 52.14325 ? Also the dates they've given aren't the exact start and end dates of each tax year.

I'd like my calculations to be as accurate as possible.

It's normally calculated by multiplying by 52 although there might be the odd year that is 53. Part weeks wouldn't be taken into account as the pension has been paid for the whole week.

I would go with 52 as I'm pretty sure that's what HMRC would use but if you want it as accurate as possible you would need to list each week that payment has been mad within each tax year and then add it up.

Pennywise

Just get out the last few years diaries or calendars. Find out which day the pension is paid (I think it's a Monday) and then count the number of Mondays between 6/4/X1 and 5/4/X2.

AirlieBird

Have just checked in Excel and there are 52 payments in each year except for 2009/10 when there was 53 weeks. This is also the year where payment appears to have increased mid year and the split was 36 weeks to the first amount and 17 weeks to the second amount.

BoGoF

HMRC will normally take one week at the 'old' rate then 51 weeks at the increased rate

John_Pierpoint

I had this problem admittedly some 6-15 years ago.

Mum would get her annual summary from the tax man and lose it.

I would flap around with the likes of Citizens Advice to see if we could recreate what she actually got, between 06April and 05April (two dates that reflect "HMRC's" refusal to rationalise the tax year, when the calendar was corrected.)

In her dotage, she lost the plot and had a load of medical issues, which made sorting out her tax somewhere nearer the bottom of the "To Do List".

I phoned her tax office after she died and explained that I had 5 returns to sort out. [Those were the days when you could still 'phone the tax office - not an unobtainable call centre; before failing to complete your tax return - even if you don't owe any extra tax - became an automatic fine.]

I was told just to multiply the figures I did have by 52 - "because that is all we bother to do".

I have no idea if that is official policy - but that is what I did, to reclaim some 300 - 400 per year.

fluffig

Many thanks to all for your replies :T and also @AirlieBird thanks for splitting that year when his pension increased by weeks for me.

Off to do some maths now

barak

I'm surprised nobody has suggested reading the HMRC Notes for the relevant Tax Year!

For 2009/2010 you multiply your weekly entitlement by 52, or 53 if you were paid weekly or 4-weekly on Mondays.
See Page 13 Box 7
http://www.hmrc.gov.uk/worksheets/2010/sa150.pdf

For 2010/2011 it's those paid on Tuesdays that should use 53 and the notes repeat that it is [unusually] your annual State Pension "entitlement" that is taxed rather than the amount you actually receive during the tax year.
See Page 13 Box 7
http://www.hmrc.gov.uk/worksheets/sa150.pdf