SP in which tax year will my SP start?

sleepymans

I have what I think is a simple query which I’d be grateful if someone might be able to answer.

I an currently receiving a defined benefits pension of slightly below the tax threshold so have been a non tax payer. I reach SP age on 6 March 2020 and intend to claim my SP.

I assume it’s paid 4 weekly in arrears?
I understand SP will take me over the tax threshold but what date is relevant to tax calculations? Would it be the amount due per tax year or the amount received per tax year?

TIA

BoGoF

It is the amount accruing in the tax year so regardless of when it is paid the amount arising from 6 March to 5 April 2020 will be taxable in 19/20.

badmemory

All the first 4 weeks will be taxable in the current tax year. Anything after should be in the next tax year.



If you are concerned about the tax you may need to pay for the current tax year, then why not defer claiming until say mid June. Depending on when your normal state pension age is, that may give you a small increase in your state pension & ensure no tax is due in the current year too. If you defer for nine weeks it adds 1% to your state pension for life. (% Added weekly not 9 weekly - so doesn't have to be a multiple of 9 weeks)

JoeCrystal

sleepymans wrote: »

I have what I think is a simple query which I’d be grateful if someone might be able to answer.

I an currently receiving a defined benefits pension of slightly below the tax threshold so have been a non tax payer. I reach SP age on 6 March 2020 and intend to claim my SP.

I assume it’s paid 4 weekly in arrears?
I understand SP will take me over the tax threshold but what date is relevant to tax calculations? Would it be the amount due per tax year or the amount received per tax year?

TIA

You can also ask to have it paid weekly I believe if you apply via phone?