Annual State Pension Income

xylophone

I note that SA100 2018-19 says

State Pension – amount you were entitled to receive in the year, not the weekly or 4-weekly amount - read the notes*

*Box 8 State Pension

Use the letter ‘About the general increase in benefits’ that the Pension Service sent you to find your weekly State Pension amount.

Add up the amount you were entitled to receive from 6 April 2018 to 5 April 2019 and put the total in box 8. Do not include any amount you received for Attendance Allowance.

If your State Pension changed during the year or you only received it for part of the year, multiply each amount by the number of weeks that you were entitled to receive it. Add up your amounts carefully.

If you do not have the letter from the Pension Service, phone them on 0345 606 0265 (textphone 0800 731 7339) and ask them for the information.

[Deleted User]

Silvertabby wrote: »

Because just 52 x 7 = 364.

52.17 x 7 = 365.19, being the average of 3 normal years and one leap year.

I understand what badmemory is saying, and even this 52.17 would be subject to tweeking depending on the actual paymment day, but it is the formula for working out the annual State pension.

Well that's certainly not the formula that DWP are using, nevertheless, I now understand why you're using 52.17.

But I haven't yet received a reply as to why DWP are using the new increased amount X 52 when in any one tax year, I'm actually receiving the first payment at the previous year's amount. Consequently, the total amount of pension income is over-calculated year on year.

[Deleted User]

xylophone wrote: »

I note that SA100 2018-19 says

State Pension – amount you were entitled to receive in the year, not the weekly or 4-weekly amount - read the notes*

*Box 8 State Pension

Use the letter ‘About the general increase in benefits’ that the Pension Service sent you to find your weekly State Pension amount.

Add up the amount you were entitled to receive from 6 April 2018 to 5 April 2019 and put the total in box 8. Do not include any amount you received for Attendance Allowance.

If your State Pension changed during the year or you only received it for part of the year, multiply each amount by the number of weeks that you were entitled to receive it. Add up your amounts carefully.

If you do not have the letter from the Pension Service, phone them on 0345 606 0265 (textphone 0800 731 7339) and ask them for the information.

Thank you Xylophone. That really sums it up nicely doesn't it?? However, it never ceases to amaze me at the sheer incompetence of government procedures.

badmemory

The first increased payment of state pension is paid on the first payment date after usually the 10th of April or later. This means that any payment due between 6th & 9th (approx obviously) is made at the old rate despite being in the new tax year. Of course they could simplify this by having the increase on 6th April but that would be way too easy/logical.


State pension is accrued weekly (as in taxable then) despite often being paid 4-weekly.

grnglide

Of course they could simplify this by having the increase on 6th April but that would be way too easy/logical.

That doesn't work as SP entitlement is to whole weeks (apart from odd days at the beginning of a claim) so you cannot have an increase in the middle of a pay week.

badmemory

I apologise - I should have said on the first pension payment date after the 6th April, instead of the way it is now which can be several days later with a payment at the old rate in between!

brewerdave

badmemory wrote: »

Well they were the ones who said they knew better than me and insisted I stop doing self assessment. So far their "accurate" figures for interest have been less than a third what they should have been. It is taking both me & HMRC longer to correct their figures than it ever did for me to file SA.

The system is crazy - I think I SHOULD be doing self assessment -but HMRC keep telling me I don't need to -HOWEVER, my wife who hasn't paid tax since she finished work, gets a demand for filling out the self assessment forms every year!!:(

grnglide

the first pension payment date after the 6th April, instead of the way it is now which can be several days later with a payment at the old rate in between!

I seem to recall that it is the first Monday on or after 6th April and the everyone is updated in that week. This does give the situation where people can get a payment at the old rate between 6th April and the following Monday.


It probably isn't as bad when people are paid in advance and many people still are.


But it is what it was. The payment date for the updating would almost certainly require legislation to change it and the IT changes for DWP would be horrendous. HMRC seem to be happy with the odd week floating around.

badmemory

Well I am still waiting to see if the DWP manage to get my state pension anywhere near right for the last tax year. If they report what I think they will, then it will save me £50 in tax. New moral dilemma, they always insist that they are right & they don't make mistakes, so do I correct them & cough up or do I go along with them. The trouble is I know I won't sleep at night if I let them get it wrong & underpay.