Tax due on State Pension

brewerdave

Trying to help my wife complete her tax return for 2019-20. I thought that the SP would be automatically "filled in" but nothing on tax account. The problem I have is that she deferred for over 3 years then took it part way thru the year. I've calculated it as the number of days between the date of entitlement and the 5th April x her daily SP rate ( weekly divided by 7)  but it comes out a bit over what she actually received in the tax year. Will HMRC substitute the figure that (I presume!) they get from DWP or will they use my figure ??

Linton

State Pension is taxed on what you have accrued over the tax year rather than that actually received.  This will make a particular difference in the first year since SP is paid 4-weekly in arrears.  It would seem you have worked it out correctly.

comeandgo

They use your figure.

squirrelpie

Linton said:

SP is paid 4-weekly in arrears.

Only if that is what you choose. Mine is paid weekly.