State pension underpaid

Hotto

Hope someone can help me with this.
The DWP sent me a letter saying that they had been under paying me since 2010 they say it is £ 1200 a year it comes to aprox £ 11K, but what about the interest on this money they owe me. And what will the inland revenue want out of it when I get paid. As you can imagine I am spitting feathers at present. I could have used this to live on.

JezR

Income Tax:

Arrears of benefit may be paid in a lump sum. The arrears are chargeable for the year or years of assessment to which they relate.

Reference: https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim76005

Hotto

Can I claim interest on the monies owed me for seven years to offfst the tax liability.

McKneff

Ask them for interest on the money

Are you a taxpayer,

You presumably had enough money to live on, look on it as a savings bak and thinkof it as a bonus.

As for tax, it depends on your personal circumstances

Why didnt you notice yourselfu

xylophone

Can I claim interest on the monies owed me for seven years to offfst the tax liability.

It would appear that you will only pay tax to the extent that you would have done had the payments been received in the appropriate tax year?

Hotto

Thanks. When I took it in 2010 when I retired I asked if the amount was correct and they kept saying it's all computerised. But aparantly they miscalculated the contracted out part of the pension. And I asked this in 2010 but was assured it was correct.

xylophone

Why didnt you notice yourselfu

Not always easy - the OP had a defined benefit pension with GMP- it is possible that the mistake has arisen in respect of the Contracted Out Deduction.

Hotto

Yes your right, it's the contracted out Deductions that's been the reason.

GunJack

£1200 a year is £8400, so sounds like they've already added interest....best ask them for a breakdown