Pensions, State Pension and tax

badmemory

jimmo said:

On the other hand, I also have 2 private pensions plus State Pension and am not in SA.

Well I am prepared to bet that your state pension has not been correct for ALL the years you have been taking it, because the DWP calculate it in a way which differs from HMRC instructions.  Have you noticed that the first payment in the new tax year is lower than the other 12?  This is because the increase is NORMALLY after the first pay date so should be 1 week at last years rate & 51 at the new rate.  It doesn't sound like much although for me is £1.60 in tax.  Again doesn't sound like much.  But how many people in the UK get the state pension & DO get enough income to pay tax?

The difference between us & is what causes me problems is that I have started taking my personal pension (an annuity - yes I know but I really couldn't be bothered).  They are convinced they can tax that enough to take the tax due on my state pension, they cannot & am now sick of telling them.  Obviously I can pay the bill today but it won't stop me trying the poor little me card.

The good news for me is that this future year (20-21) the state pension calculation should be correct!  The real problem now is that I have so little trust in both the DWP & HMRC that I am considering asking for all info they hold on me.