State Pension - please help **Update again**

hec2308

Alice_Holt wrote: »

It might be worth checking which level of AA your grandfather is receiving. It can be paid at 2 levels. The high award being for those who have care needs during the night as well as the day. Could this higher award may be more appropriate ?


Now that payments are re-instated it might be worth looking at DWP Financial Redress for Maladministration :
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/422425/financial-redress-maladministration-apr-15.pdf

Re Tax - there is an organisation Tax Help for Older People - http://www.taxvol.org.uk/

Thanks very much. Really all I would like is for my grandmother to receive an apology, and that has not yet happened.

I believe he was receiving the higher rate previously as it was definitely a figure of around £80. I will check to make sure it is this rate that continues and has been backdated at this rate, however I am expecting it to be discontinued as my grandfather will in all likelihood be in hospital for another two weeks. Does anyone know if we have to start a brand new claim after this time has passed?

xylophone

http://www.rights4seniors.net/content/after-28-days

http://www.ageuk.org.uk/documents/en-gb/factsheets/fs34_attendance_allowance_fcs.pdf?dtrk=true

hec2308

xylophone wrote: »

http://www.rights4seniors.net/content/after-28-days

http://www.ageuk.org.uk/documents/en-gb/factsheets/fs34_attendance_allowance_fcs.pdf?dtrk=true

Smashin', thank you

Mojisola

hec2308 wrote: »

This may be the case with my grandfather but definitely not with my grandmother!

We've got LPAs set up. They have to be done while you are compos mentis - it might be too late for your grandfather but grandmother could get hers arranged.

If grandfather's dementia is too bad, someone will have go through the Court of Protection instead - much more expensive and slower.

xylophone

We've got LPAs set up. They have to be done while you are compos mentis - it might be too late for your grandfather but grandmother could get hers arranged.

If grandfather's dementia is too bad, someone will have go through the Court of Protection instead - much more expensive and slower.

The OP's grandmother has POA for grandfather.

She might wish to consider reviewing this arrangement and LPA for herself in case of her own illness/infirmity.

http://www.ageuk.org.uk/money-matters/legal-issues/powers-of-attorney/lasting-power-of-attorney/

hec2308

Slightly tearing my hair out still unfortunately. Trying to get DWP and HMRC to do the same thing is apparently impossible.

So DWP have made the backdated payments, we now have the missing Attendance Allowance and State Pension money. Which is great. But HMRC have issued P800s for the 2014-15 and 2015-16 tax years which have different figures on to what DWP have paid. So I'm still in limbo-land as far as definite tax liabilities are concerned and am not certain who is right and who is wrong. If HMRC are right then some money will have to go back so this is currently holding up committing to adjustments to the property which we really need to get on with to get my grandfather out of hospital.

Regardless there will definitely be a tax liability of some kind - will we have to complete a different form to get this paid and if so does anyone know of the top of their heads what this would be? I'm assuming that completing an R40 would be entirely pointless going forward...

Still no response from MP, and no apology forthcoming from anyone.

xylophone

You are aware that Attendance Allowance is not taxable?

Still no response from MP, and no apology forthcoming from anyone.

What explanation was given by DWP for what happened?

Other than by not noticing that the state pension and AA were not being paid, is there any suggestion that your grandmother bears any responsibility for what happened - a form not returned/letter not answered etc?

Your grandfather's pension has been treated by DWP as though it had been deferred for 36 (?) months? Then for the current tax year see

http://www.litrg.org.uk/tax-guides/pensioners-and-tax/what-tax-do-i-pay-my-state-pension-lump-sum

With regard to the tax years 2013-14/14-15/15-16, you need to go back over your grandfather's P60s from his occupational pension administrator, check his records for any other taxable income and work out what he has actually paid in tax and what he should have paid in tax.

Bear in mind the treatment of savings income for those three tax years.

http://www.pruadviser.co.uk/content/knowledge/oracle_archive/oracle-technical/oracle-tech-november-14/savings-rate/

hec2308

xylophone wrote: »

You are aware that Attendance Allowance is not taxable?

Yep, ignoring the Attendance Allowance completely. It's purely the State Pension figures mentioned on the P800 form that don't add up.

xylophone wrote: »

What explanation was given by DWP for what happened?

No one seems to be able to give us one, either that or they don't want to. The lady who visited the other week said that it shouldn't be possible for this to happen, as even if the letter and visit did happen and no response was received, they are supposed to check all sorts of other things such as the electoral register etc. which he is still active on. Basically it should have been investigated at the time, and no one will investigate into the lack of investigation!

xylophone wrote: »

Other than by not noticing that the state pension and AA were not being paid, is there any suggestion that your grandmother bears any responsibility for what happened - a form not returned/letter not answered etc?

Sorry, got ahead of myself. See my response above from your previous question. Even if there was no response to the letter they say they sent but we never received, this shouldn't have happened at their end.

xylophone wrote: »

Your grandfather's pension has been treated by DWP as though it had been deferred for 36 (?) months? Then for the current tax year see

http://www.litrg.org.uk/tax-guides/pensioners-and-tax/what-tax-do-i-pay-my-state-pension-lump-sum

With regard to the tax years 2013-14/14-15/15-16, you need to go back over your grandfather's P60s from his occupational pension administrator, check his records for any other taxable income and work out what he has actually paid in tax and what he should have paid in tax.

Still in the process of digging out previous documents. Quite a few box files to go through as we keep everything (hence why we know we never received a letter from DWP in 2013!)

As far as I can establish he should only be paying 20% and that is all they're asking for, it's just they're asking for 20% on the wrong amounts. E.g. For the 2014/15 tax year, DWP have made a backdated payment of £6,688. On the HMRC P800 for 2014/15 they have his State Pension entitlement down as £761.64 so the entire calculation is wrong.

badmemory

I was wondering if HMRC would take the tax which may be owing by changing his code for the next 2 years. That presumably would mean that the work can go ahead and he can come out of hospital sooner.

xylophone

Basically it should have been investigated at the time, and no one will investigate into the lack of investigation!

Then your grandmother can make a formal complaint in writing.

I had understood from what you said previously that he has received no state pension at all for 36 (?) months?

It has come back into payment in this tax year as has the lump sum - for taxation see link above - I am assuming that tax has already been taken on the lump sum?

Look back on P60's and P800s and P2s for the years when his state pension was being paid correctly.

His tax code for those years shows his Personal Allowance, that is to say the amount he is allowed to "earn" before paying any tax.

As he was probably in receipt of married couples' allowance this is likely to have been higher than the standard personal allowance.

Was he entitled to any other allowances?

State pension is taxable income as is his occupational pension.

State Pension is paid gross - any tax due is collected by means of an adjustment to the tax code on the occupational pension.

I am assuming from your previous posts that up to the beginning of this tax year, your grandfather's non isa interest has always been paid net of 20% tax which is probably correct but you can check this.

You need to check whether your grandfather has overpaid tax on his personal pension from the time that he ceased receiving his state pension.