State Pension letter?

LHW99

molerat said:

It really goes back to "the old days" when the poor pensioner would go to the post office for his weekly spending money. Getting the computer to pay the weekly calculated amount in weeks or multiples thereof is simple, reprogramming it to pay monthly - as well as weekly / 2 weekly / 4 weekly for those that still want it - would be quite a major operation. Not really that fussed how often it is paid - goes into my savings pot anyway and then less than half goes back into my budget pot monthly.  I would like to have tax deducted at source, would save a lot of aggro - but I appreciate it ain't gonna happen !

If they know the weekly amount then all they have to do is divide it by 7,and multiply by the no of days each month. Shouldn't be that hard.

eskbanker

LHW99 said:

molerat said:

It really goes back to "the old days" when the poor pensioner would go to the post office for his weekly spending money. Getting the computer to pay the weekly calculated amount in weeks or multiples thereof is simple, reprogramming it to pay monthly - as well as weekly / 2 weekly / 4 weekly for those that still want it - would be quite a major operation. Not really that fussed how often it is paid - goes into my savings pot anyway and then less than half goes back into my budget pot monthly.  I would like to have tax deducted at source, would save a lot of aggro - but I appreciate it ain't gonna happen !

If they know the weekly amount then all they have to do is divide it by 7,and multiply by the no of days each month. Shouldn't be that hard.

Brilliant!  Yes, that'll be the reason they don't do it, because they need help with that complex arithmetic involved in working out the number of the days in the month, and once you've helped them figure that one out, it's all plain sailing....

/s

Eldi_Dos

GibbsRule_No3. said:

Had my letter today and nice surprise, since I knew it is paid in arrears and was not expecting anything until April.  Have a query, it is due from March 6 and letter tells me it will pay me £152.37 for 6-12 March on 12 March and then £609.48 on 9 April.  On the online info that I had before the letter it says £152.37 is the weekly amount, so that is the same but it says £662.54 is the monthly amount. 52 x £152.37 would give me what the online yearly amount is but is the difference £53.06 because there are more than 12 payments a year, if so why do they bother telling you the monthly amount?  Also will the payments move around the months rather than being on the 9th each time?  Guess I really like regular dates for payment, much easier to plan.

I also have March 6 as start date for pension, am still waiting on letter.I was hoping four week payment would be made on 2nd April and would then be tax free if same arrangement is made and four week payment is made on 9th April it would be taxable. Any thoughts on how to avoid this.

p00hsticks

Eldi_Dos said:

I also have March 6 as start date for pension, am still waiting on letter.I was hoping four week payment would be made on 2nd April and would then be tax free if same arrangement is made and four week payment is made on 9th April it would be taxable. Any thoughts on how to avoid this.

As I think a previous poster has said, HMRC regard state pension as being taxable in the year it is accrued, which is not necessarily the same as the year in which it is paid. So even if the payment happens after 5th April, the portiion of the sum covering the period until the 5th falls into the current year for taxation purposes

GibbsRule_No3.

Eldi_Dos said:

I also have March 6 as start date for pension, am still waiting on letter.I was hoping four week payment would be made on 2nd April and would then be tax free if same arrangement is made and four week payment is made on 9th April it would be taxable. Any thoughts on how to avoid this.

No idea now to avoid the tax thing. At least it will only be the £152.37 won’t it, or will the days, except 3 from the 9 April payment also be in this years tax bracket?  As I already pay tax on two pensions and the monthly pay and I knew from when the pensions came into play it mucked about with HMRC for two years until it settled down, it is about to get iffy again, be it in my favour or theirs for at least another three years I reckon, mainly because when I do retire I am going to take the Stakeholder pension as a lump sum (I know, I know! I should look at drawdown etc to mitigate the tax).  So I think the first year I take that the tax will be huge ( for me) but they will probably have to pay it back the year after, before hopefully, everything settles down after that, until I die.

badmemory

Just feel the need to add - do not under any circumstances trust the figures given to you for tax purposes by the DWP or HMRC.

I have been "extra" to PAYE for the last 8 years.  They have not got it right once.  I paid no tax last tax year or this tax year & they seem to think that next tax year they can take the £3k due out of a pension of £2k (the max they can take is £1k on  a K code).  (Don't worry folks it is in a savings account just waiting for them to get their a**** in gear.)  I've told them 3 times now.  Frankly no longer care.  They also can't get my savings interest any where near right despite the fact that the accounts are all with mainstream banks & they are supposed to report interest - I do know not to include ISAs by the way.

This farce should actually get easier once you get over 70 but it doesn't.  I'm sure even I could still organise a booze up in a brewery, not so sure about DWP & HMRC & most banks too.  Goodness alone knows what will happen when dementia takes its toll, I'm not totally sure my POA will realise how useless they are.  You do have a POA don't you?  If you don't GET ONE only £82 each - today!