State pension - payslips?

Pepsimaxrock

Hello
Ive recently reached state pension age - that was a long wait!
I see the SP on my personal HMRC account. It’s not correct. I may pay more tax than I should. However there is no detail there and I cannot change it. 

I believe that you get no payslips or P60 with the SP. 
How can I evidence to HMRC that I have not had as much SP as they have noted on their records. 
i get the full pension of 740 every 4 weeks. 

I have 3 db pensions as well so I should pay some tax but Im heading for paying too much. 

Can anyone help

Dazed_and_C0nfused

Taxation of State Pension in the first tax year you receive is notoriously misunderstood (even by HMRC staff!).

What exactly do you think is wrong, it's not that they have got an annual figure in your tax code by any chance is it?  When you're thinking you will only receive it for say 10/12ths of the tax year?

dunstonh

I believe that you get no payslips or P60 with the SP. 

Correct.  The state pension doesn't go through a payroll system and is not PAYE.

How can I evidence to HMRC that I have not had as much SP as they have noted on their records. 

HMRC don't normally require evidence unless they choose to investigate it.   Usually, data like this is electronically sent over.

I have 3 db pensions as well so I should pay some tax but Im heading for paying too much. 

Year one of the state pension can take a few months to settle. Especially if you have multiple sources of income going through different tax offices.

I see the SP on my personal HMRC account. It’s not correct.

State pension is four weekly. Not monthly.   Is it possible you are forgetting there are 13 payments in the year and not 12?

xylophone

State pension is four weekly. Not monthly.   Is it possible you are forgetting there are 13 payments in the year and not 12?

The OP says

i get the full pension of 740 every 4 weeks. 

 If he gets full NSP it is a little more than this (£740.60).

Dazed_and_C0nfused

My money is on the op not understanding the way State Pension is usually taxed in the first year of receipt.

LITRG cover it in one of their guides,

https://www.litrg.org.uk/tax-guides/pensioners/types-income-retirement#toc-is-my-state-pension-taxable-

xylophone

Taxation of State Pension in the first tax year you receive is notoriously misunderstood (even by HMRC staff!).

https://community.hmrc.gov.uk/customerforums/sa/1288738a-21c5-ea11-bf21-00155d3b91f4

Posted 3 months ago by HMRC Admin 20 

Hi Peter Cook,

We only tax you on the amount you receive during the year.
We enter the full years into the tax coding, however we put your tax code on an emergency basis, which allows us to use the code for part of the year, and not backdate to the start of the year.
For example, if you received a half years worth of State Pension, we use the tax code which includes the full years entitlement for half the year.

Pepsimaxrock

dunstonh said:

I believe that you get no payslips or P60 with the SP. 

Correct.  The state pension doesn't go through a payroll system and is not PAYE.

How can I evidence to HMRC that I have not had as much SP as they have noted on their records. 

HMRC don't normally require evidence unless they choose to investigate it.   Usually, data like this is electronically sent over.

I have 3 db pensions as well so I should pay some tax but Im heading for paying too much. 

Year one of the state pension can take a few months to settle. Especially if you have multiple sources of income going through different tax offices.

I see the SP on my personal HMRC account. It’s not correct.

State pension is four weekly. Not monthly.   Is it possible you are forgetting there are 13 payments in the year and not 12?

Pepsimaxrock said:

Hello
Ive recently reached state pension age - that was a long wait!
I see the SP on my personal HMRC account. It’s not correct. I may pay more tax than I should. However there is no detail there and I cannot change it. 

I believe that you get no payslips or P60 with the SP. 
How can I evidence to HMRC that I have not had as much SP as they have noted on their records. 
i get the full pension of 740 every 4 weeks. 

I have 3 db pensions as well so I should pay some tax but Im heading for paying too much. 

Can anyone help

dunstonh said:

I believe that you get no payslips or P60 with the SP. 

Correct.  The state pension doesn't go through a payroll system and is not PAYE.

How can I evidence to HMRC that I have not had as much SP as they have noted on their records. 

HMRC don't normally require evidence unless they choose to investigate it.   Usually, data like this is electronically sent over.

I have 3 db pensions as well so I should pay some tax but Im heading for paying too much. 

Year one of the state pension can take a few months to settle. Especially if you have multiple sources of income going through different tax offices.

I see the SP on my personal HMRC account. It’s not correct.

State pension is four weekly. Not monthly.   Is it possible you are forgetting there are 13 payments in the year and not 12?

xylophone said:

State pension is four weekly. Not monthly.   Is it possible you are forgetting there are 13 payments in the year and not 12?

The OP says

i get the full pension of 740 every 4 weeks. 

 If he gets full NSP it is a little more than this (£740.60).

Dazed_and_C0nfused said:

Taxation of State Pension in the first tax year you receive is notoriously misunderstood (even by HMRC staff!).

What exactly do you think is wrong, it's not that they have got an annual figure in your tax code by any chance is it?  When you're thinking you will only receive it for say 10/12ths of the tax year?

Dazed_and_C0nfused said:

My money is on the op not understanding the way State Pension is usually taxed in the first year of receipt.

LITRG cover it in one of their guides,

https://www.litrg.org.uk/tax-guides/pensioners/types-income-retirement#toc-is-my-state-pension-taxable-

Dazed_and_C0nfused said:

My money is on the op not understanding the way State Pension is usually taxed in the first year of receipt.

LITRG cover it in one of their guides,

https://www.litrg.org.uk/tax-guides/pensioners/types-income-retirement#toc-is-my-state-pension-taxable-

Pepsimaxrock

Many thanks all

Dazed and Confused   Yes that seems to be it - I became entitled to SP on 19/5 and it looks like HMRC are expecting a full years SP to tax.  Is this something you're familiar with and can advise me on how to change?
You'll have noted that I mentioned 4 weekly payments in my post, but thanks for reminding me. 


Xylophone - thanks for pointing up that I'd mentioned 4 weekly payments.  I am not a "he" 

Appreciate that I have 3 DB pensions (plus a lump sum from a DC pension) so its complicated.  It looks like I'll have to wait a little for things to settle.  Then I'll contact HMRC. 

   

Dazed_and_C0nfused

Pepsimaxrock said:

Many thanks all

Dazed and Confused   Yes that seems to be it - I became entitled to SP on 19/5 and it looks like HMRC are expecting a full years SP to tax.  Is this something you're familiar with and can advise me on how to change?
You'll have noted that I mentioned 4 weekly payments in my post, but thanks for reminding me. 


Xylophone - thanks for pointing up that I'd mentioned 4 weekly payments.  I am not a "he" 

Appreciate that I have 3 DB pensions (plus a lump sum from a DC pension) so its complicated.  It looks like I'll have to wait a little for things to settle.  Then I'll contact HMRC. 

   

There's nothing for you to change.

You will be taxed on the full annual State Pension but only for each month since you started to receive it, it isn't backdated like a cumulative tax code would be.

You were taxed without State Pension for the period from 6 April to when your tax code was changed.

So overall you are paying the correct amount of tax.

Have you read the LITRG guide?

dunstonh

xylophone said:

State pension is four weekly. Not monthly.   Is it possible you are forgetting there are 13 payments in the year and not 12?

The OP says

i get the full pension of 740 every 4 weeks. 

 If he gets full NSP it is a little more than this (£740.60).

You would be surprised at the number of people that don't realise that 4 weekly means 13 pay periods and not 12. ie. they take the 4w figure and multiply it by 12.     No harm in checking.

molerat

The SP will be mentioned in 2 places on your tax account, they will likely be different amounts.

One is under your income sources and the other is under "what makes up your tax free amount"

Have any of your tax codes changed to suffix X or M1 ?

And as has been mentioned elsewhere they will invariably get it wrong first year and will make a correction in next years coding.