accountants tax figure different than HMRC

begbeer

Have just had my tax calculation form from HMRC and there is a difference of £185 from the amount my accountant said I would have to pay, part of the difference is the state pension, I worked out exactly how much I had received in the year but because I am paid four weekly HMRC had added another two weeks of pension money is this normal

Wayne_O_Mac

Yes. The state pension is taxed based on how much you are entitled to receive, not how much you actually got.

Look at the weekly figure (taking account of when during the year it increased) and see if this brings the figures closer.

agrinnall

The State Pension letter you receive around the start of the tax year states the value of your State Pension for tax calculation purposes.

badmemory

The letter you receive only gives the new payment per week. It is likely that the first week (and possibly the second but unusual) of the new tax year is at the old rate with the other 51/52 weeks of the tax year being at the new rate. Every few years you will get a 53 week year which will make a big difference to the tax due.

chrismac1

It's probably the most common reason for tax recalculations. It's pretty ridiculous that the one pension provider not required to issue a P60 by law - the State - is also the one most likely to muck around with the numbers.

polymaff

agrinnall wrote: »

The State Pension letter you receive around the start of the tax year states the value of your State Pension for tax calculation purposes.

Never had one - just the BR5899 in January.

What is the BR number of this form, please?

badmemory

I've never had one either & I have been doing SA because of my state pension for 6 years now. The BR5899 from the DWP just tells you the weekly amount not how much per annum. I have a spreadsheet that tells me that MY state pension will be paid for 53 weeks in tax year 18-19 which means that I will have extra tax to pay that year. Although, as HMRC are going to calculate & bill me from this year, if they choose to only do it based on 52 weeks then who am I to argue.

The tax year that you pay on 53 weeks depends on your pay day in my case Friday. I believe for this year it is payday Thursday.

agrinnall

polymaff wrote: »

Never had one - just the BR5899 in January.

What is the BR number of this form, please?

Don't know, just going on a memory of what was in my mum's SP letter when I was doing her return in the years it was required - it was a few years ago now so perhaps I am mistaken in my recollection.