State pension and tax code query

RG2015

RobM99 said:

Hi all simple question here (I hope!)

I have a company pension and my tax code is the standard single person one -, 1257L.
From April 2022 I will receive my state pension and my new tax code is going down to 490L.
Is this because the state pension is taxable but not taxed - i.e. the company pension pays the tax?

When did you receive your new tax code?

I am already receiving my state pension and my tax code has not changed.

molerat

RG2015 said:

RobM99 said:

Hi all simple question here (I hope!)

I have a company pension and my tax code is the standard single person one -, 1257L.
From April 2022 I will receive my state pension and my new tax code is going down to 490L.
Is this because the state pension is taxable but not taxed - i.e. the company pension pays the tax?

When did you receive your new tax code?

I am already receiving my state pension and my tax code has not changed.

It generally changes within a very short time of commencing SP.

Do you have other taxable income ?

RG2015

molerat said:

RG2015 said:

RobM99 said:

Hi all simple question here (I hope!)

I have a company pension and my tax code is the standard single person one -, 1257L.
From April 2022 I will receive my state pension and my new tax code is going down to 490L.
Is this because the state pension is taxable but not taxed - i.e. the company pension pays the tax?

When did you receive your new tax code?

I am already receiving my state pension and my tax code has not changed.

It generally changes within a very short time of commencing SP.

Do you have other taxable income ?

Thanks, and I do have a company pension from which I am expecting my SP income tax to be deducted.

I guess HMRC (and/or DWP) are a bit slow in getting my information updated (compared with the OP) 

badmemory

If you add your state pension for the full year & the tax code on your Co pension x 10 you should get 12570, well near enough anyway.  If it is way out then it needs looking at.  At this early stge of the year near enough is good enough.

RG2015

badmemory said:

If you add your state pension for the full year & the tax code on your Co pension x 10 you should get 12570, well near enough anyway.  If it is way out then it needs looking at.  At this early stge of the year near enough is good enough.

I don't follow your calculation.

My SP is untaxed income, so my tax code needs to be reduced by 880, which is one tenth of my annual SP of £8,800.

It has not been changed for 2022/2023 and I am merely asking when I can expect it to be changed.

PS I have just seen what your calculation does.

My tax code is 1378M and is should be 499M (assuming that there is not a new suffix for a tax code that incorporates a state pension). 

RobM99

Hi all, that issue resolved  

Now another quick query (fully expect a "yes" or "no" answer;

My first state pension part-payment was mid March (17th). I thought the full month payment was due first Thursday (in my case) of the month but that was yesterday and so far has not been paid. Am I wrong?

RG2015

RobM99 said:

Hi all, that issue resolved  

Now another quick query (fully expect a "yes" or "no" answer;

My first state pension part-payment was mid March (17th). I thought the full month payment was due first Thursday (in my case) of the month but that was yesterday and so far has not been paid. Am I wrong?

My letter from the DWP gave the payment date for both my initial payment and my first full payment.

These were 4 weeks apart, which suggests that your second payment will be Thursday 14th April.

RobM99

RG2015 said:

RobM99 said:

Hi all, that issue resolved  

Now another quick query (fully expect a "yes" or "no" answer;

My first state pension part-payment was mid March (17th). I thought the full month payment was due first Thursday (in my case) of the month but that was yesterday and so far has not been paid. Am I wrong?

My letter from the DWP gave the payment date for both my initial payment and my first full payment.

These were 4 weeks apart, which suggests that your second payment will be Thursday 14th April

OK thanks, that makes sense. :

RG2015

RobM99 said:

Hi all, that issue resolved  

Now another quick query (fully expect a "yes" or "no" answer;

My first state pension part-payment was mid March (17th). I thought the full month payment was due first Thursday (in my case) of the month but that was yesterday and so far has not been paid. Am I wrong?

This also answers my earlier query. I was concerned that you had received your new code on or before 16th March for an initial payment in April.

As your initial payment was actually on 17th March, I am less concerned that I do not as yet have my new tax code online.

Dazed_and_C0nfused

HMRC shouldn't issue a tax code with State Pension included until the commencement date has passed.

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye76086