Longer term deferring

greenglide

Then they'll just turn down the application we've just sent, and that will be the end of

The pension service would have been able to say immedialy on the phone whether he was in receipt of state pension or not.

There would be no need for a paper application, it could have been done on the telephone as well.

What has he applied for?

For example, his P60 for 2006-07, has a tax free allowance of 5035, then a reduction of 4379 (state pension), leaving a tax code of 65L.

A P60 wouldn't have any details of other sources of income, a notice of coding would though, is that what you were referring to?

It is possible that HMRC have "assumed" that the state pension has been in payment. When he first reached SPa, many years ago, there wasn't the automatic interface between DWP and HMRC telling them how much SP is actually in payment.

If his army pension is paying him £1,200 nett and most of that has been taxed he would be well in the basic rate tax band but wouldn't be paying higher rate. If he took the lump sum for differing rather than the increments, which looks attractive, he would only pay 20% tax on it, no matter how much it was. It really is stupendous the way it works.

I believe he has a while after claiming his pension before he "must" choose.

xylophone

Has he been over taxed as well? He would have been entitled to the over 65 allowance?

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/516769/Table-a1.pdf

https://theexpert.axa.co.uk/rates-and-factors/basic-state-pension

I don't understand the reference to P60 showing a reduction for state pension - does the OP mean P800?

eastcorkram

Sorry. Yes, it's the notice of codings I'm talking about! I'd just been looking at the P60s, hence the mistake.
We couldn't apply over the phone, as he'd never be able to hear what they were saying properly.
I couldn't find out if he was already in receipt of it, because they when I spoke to them, they didn't even want to know his name and NI number. They said they would need to speak to him, rather than me. When I explained that would be difficult, due to his hearing, they just said, 'no problem, we'll send out the forms'.

@greenglide, the thing he has applied for, is the state pension.

I understand he will pay tax on any lump sum. But I'm thinking that given what those notice of codings say, that would mean he'd have paid tax on it twice.

Anyway. It was just an observation. The main thing to do is get the pension into payment, and sort out the arrears. We'll worry about the tax afterwards.

GunJack

eastcorkram wrote: »

Anyway. It was just an observation. The main thing to do is get the pension into payment, and sort out the arrears. We'll worry about the tax afterwards.

might be an idea to tackle both simultaneously, or he may risk paying too much tax on the SP when it starts being paid, plus by the sound of it he may be entitled to a hefty tax rebate as well as his SP....

AnotherJoe

Eastcorkram it seems to me that if your FIL is amenable you'd be best off getting a power of attorney so you can deal with his financial matters directly ?

eastcorkram

Update on this, and found the thread again to see when I started the process!

Had a letter last week, to say that pension finally now being paid. £143.36 a week. A little back payment of about four weeks, and then that amount weekly.

This does not include anything for deferring yet. Letter says they will write about that separately. 15 years worth to sort out!

Noticed that the weekly payment, contains 25p per week, for being over 80 .

When I get the next letter, I'll contact hmrc, about sorting out being on the wrong code, and paying tax due on lump sum.

Mojisola

eastcorkram wrote: »

Noticed that the weekly payment, contains 25p per week, for being over 80 .

When this extra money was first given, in 1971, it was worth having.

It should either have been increased over time or withdrawn. Just the letter telling you about your 25p increase must cost many times the weekly amount.

badmemory

What about winter fuel payment? £300 per household at his age. MIL may have been getting that so that would be alright, although I don't think they backdate that!

xylophone

Your FIL has been drawing his army pension since around 1991?

He was in the army pension scheme between 1978 and whrn he retired?

Did the pension payer not contact him about GMP when he reached the age of 65?

See https://equiniti.com/media/792325/2015-armed-forces-newsletter.pdf

Has he ( you on his behalf) contacted Equiniti to advise that he is now in receipt of his state pension?

xylophone

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/516769/Table-a1.pdf

Re personal tax allowances from 1991 - any use?