Tax Year vs Benefit Year

GrahamOrton

Every employer and pension provider reports annual payments in a Tax Year to employee or pensioner via P60 and also to HMRC - except DWP.  DWP report annual pension to HMRC based on "Benefit year".  Except where a pensioner's annual increment date is 6th April, this amount is higher than the amount actually paid in a tax year which means that a state pensioner pays more income tax than they should. Has anybody ever queried this behaviour?

p00hsticks

I don't believe they pay more income tax that they should - they just pay it earlier than they would have to if DWP gave paid rather than accrued figures.

As an aside, 'Benefit year' is not the term you want ( I'm not sure what is).

THE DWP 'Benefit year' is used to define what tax years are referenced when looking into eligibility of benefits that require NI contributions, and starts (I think) on the first Sunday in the calendar year.