HMRC treatment of state pension payments?

Jerben

I’m an avid reader of the forum and have learnt, and used a lot from the many knowledgeable contributors. Thank you!

My partner starts receiving her state pension in November this year. (It has been confirmed as the full NSP).
In previous years she has taken a UFPLS from her DC pot, on top of her (approx £7k) DB pension to make full use of the personal allowance.
This will be the last year that she can take from the DC pot and pay no tax.
Our question is exactly how do HMRC ‘calculate’ the state pension she will receive this tax year?

Is it on the date of receipt of the (4week) payment, or is it considered as a weekly payment?
Eg.  For a state pension (4 week) payment on 10 April 2023, are 3 weeks of this, considered by HMRC, to be in the ‘current’ tax year?
Thanks

Linton

The state pension is assumed to be a weekly payment despite you possibly not actually getting the cash for up to 4 weeks (-1 day) later.  So yes there could be 1 week in one tax year and 3 weeks in the next.

Dazed_and_C0nfused

HMRC don't calculate what she will "receive".

They will look at what her entitlement is.  So for example if the first three weeks were all paid on 15 April 2023 it would still be 3 weeks taxable in 2022:23.

Jerben

Thanks for confirming the suspicion I had.
As per my example, we will include 3 of the weeks in the 22-23 tax year, even though the ‘4 week’ payment is actually received early in the 23-24 tax year.
This will enable the full personal allowance to be used AND no tax to be paid.

molerat

HMRC will show the the amount you are being paid for tax purposes in your personal tax account.