P800 - State Pension Income query

Alice_Holt

I don't recognise the figure shown for my State Pension income on my tax calculation letter for 2018/19. All other income figures on the letter are correct.

As the DWP don't issue a P60, I have added up my State Pension receipts for the tax year (the first year of receiving my SP), which comes to £186 less than the SP income figure HMRC have.

Does anyone know why this difference arises?
Do HMRC perhaps accrue SP to the end of the tax year, or should the tax calculation be based on the actual income received?

TIA for your replies.

yorkiechick

Not uncommon for the tax office to get their figures wrong! You can appeal their decision and send in proof of what you have actually received, they should then update the calculation.

Alice_Holt

yorkiechick wrote: »

Not uncommon for the tax office to get their figures wrong! You can appeal their decision and send in proof of what you have actually received, they should then update the calculation.

Thanks, I'll do that.

Pennywise

You're taxed on accrued state pension, not received amount, so depending on what date you're paid, there is likely to be difference each year. Have you tried dividing HMRC's figure by your weekly amount for that year - it should be 52 or 53.

Alice_Holt

Pennywise wrote: »

You're taxed on accrued state pension, not received amount

Thanks, that would explain it.

p00hsticks

Pennywise wrote: »

Have you tried dividing HMRC's figure by your weekly amount for that year - it should be 52 or 53.

Or possibly less, as OP says this is the first year that they had started recieving their State Pension.

I agree about your statement that HMRC use accrued and not received State Pension amounts - I think the subject's been raised on this board before, but I can;t currently find the appropriate thread(s).


Edit: I think this thread may be relevant
https://forums.moneysavingexpert.com/discussion/5776185/changes-made-to-tax-return-re-state-pension&highlight=state+pension

00ec25

the notes for Box 8 on a tax return explain the mechanics of 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 2015 to 5 April 2016 and put the total in box 8. Don’t 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.

in simple terms, you are told how much you get per week. The amount changes after the start of the tax year, so you will have most at a higher rate that you started with. How much you actually received is not the relevant total, it is how much you were entitled to get that matters.

bear in mid that is one figure that HMRC are actually told about and able to check to your tax return so mistakes on the amount you declare are inadvisable.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/787630/SA150_2019.pdf