State Pension Tax

sparkiemalarkie

Hello, my last state pension payment was on 21st March 2022. In all I've had 6 payments this tax year. 1 fractional, and 5x full amount.
My next SP payment straddles the tax year. 
Will I be taxed in THIS tax year for the next payment/ or part of, even though it's not in my bank account yet?

tia

sx

Billxx

I don't know for sure but I would assume your next payment (18th April) will form part of your total income for the tax year 2022/2023.

Interested to hear what others think....

in_my_wellies

I'm also not sure but assume it's in the tax year it's paid.
When my husband died in January ten years ago, due to an admin error, I didn't receive his work pension until April 7th (3 x months @ 100% then 50%) This was taxed in the new tax year which pushed me into higher rate tax bracket for the first and only time ever. I was not happy!

molerat

SP is taxable in the year it is accrued and not the year it is paid.  The next payment looks like 2 weeks taxable this year and 2 next.  Your on line tax account will tell you how much is taxable this year.  SP is the exception to most tax normalities.

[Deleted User]

Unless matters have changed the state pension is paid in arrears on a Friday. Usually one received one week at the old rate and 51 weeks at the new rate and that is what was used. Guidance from tax aid differs slightly:

MalMonroe

Is your state pension above £12,570? If not you shouldn't be paying any tax. 

If your SP and any other private pensions add up to more than that, then tax should be taken from one of your other pensions.

My next SP payment will be made on 8 April and I've just received a letter to say that the (tiny) increase I'm getting will be effective as from 11 April. So I'd think that you'll be getting a similar letter soon. My new tax year is due to commence 6 days after the start of the new tax year. 

You can always check your tax codes and payments in your online HMRC account, too. Register or login, you can also ask questions in there.

Although I've been retired for 10 years I always check my tax code. The first year after I retired the codes were incorrect and I had to keep chasing HMRC (they were taking tax that I shouldn't have been paying). Always important to do this for yourself because HMRC are not always right - and they admitted that to me, in writing, as well.

More recently, the last two years my tax codes were incorrect, meaning that there were deductions that shouldn't have been made, so it's always worth checking to see if they are on the ball.

sparkiemalarkie

Thank you.
I get a private pension too which takes me over the personal allowance......
I received a letter today with my tax codes for this tax year and also next tax year.

For this year It says
Personal Allowance     £12570
Less State Pension     £3916    but I have only received £3662 State Pension
.....so I was hoping to save a bit of tax...

Seems not.
Thanks for clearing that up for me 
sx

Dazed_and_C0nfused

but I have only received £3662 State Pension

As others have said it's not what you receive that counts.

comeandgo

[Deleted User] said:

Unless matters have changed the state pension is paid in arrears on a Friday. Usually one received one week at the old rate and 51 weeks at the new rate and that is what was used. Guidance from tax aid differs slightly:

The day of the week you receive your state pension is linked to the last two numbers on your ni number, not everyone is paid on a Friday.

[Deleted User]

Hi,

Your payment date is linked to your National Insurance Number.
The table below shows the allocated paydays.
Your state pension becomes payable on the first allocated payday following your SPA.
It is then paid each week/4 weeks on your allocated payday thereafter.


Last 2 numbers of NI number Payday

00 to 19 Monday
20 to 39 Tuesday
40 to 59 Wednesday
60 to 79 Thursday
80 to 99 Friday

So, if your NI number ends with 56, your state pension will begin on the first Wednesday after your SPA.

badmemory

But if you have done anything like defer then those days may not apply.  Mine ends in 45 but I am paid on a Friday.