How to submit state pension on tax return for partial year / change of amount

Parkhall

Hi

During the last tax year I turned 66 and began to receive state pension in June. 

In the first month I received an amount. Then in July the amount increased and stayed the same for the remaining nine months.

The HMRC guidelines say "Add up the amount you were entitled to receive from 6 April 2021 to 5 April 2022 and put the total in box 8." 

So how do I calculate the correct amount to put in box 8 ?

The other guidelines about this scenario on the form make no sense.

MX5huggy

It’s just to total SP you received between the 2 April Dates. You’re over thinking it.

JoeCrystal

MX5huggy said:

It’s just to total SP you received between the 2 April Dates. You’re over thinking it.

Not necessary; the amount one get paid between these two April dates may differ from the amount one is entitled to!

Parkhall

I simply added up all the amounts that I received and submitted the form. However the Tax Calculation that I have just received in the post from HMRC seems to have assumed a larger amount of state pension that what I submitted.

Dazed_and_C0nfused

State Pension is taxed using different rules to most income.  It's what you were entitled to that counts, not what you actually received.

So you may have been entitled to say 35 weeks worth but a couple could have been included in a payment made after 5 April.

You still pay tax on those 2 weeks in the tax year they are for, not the tax year they are paid in.

How much is the difference between what you entered and what's on the new calculation?

Parkhall

Thanks very much. What I was actually paid was -

June £574.10
July - March : £595.36 per month

Total = £5932.34 - that's what I submitted in the tax return box 8.

However the taxman calculated it as £6697.33

So did they arrive at that figure ?

Dazed_and_C0nfused

You have a very basic misunderstanding.

State pension is never ever paid monthly.  It is paid four weekly, or occasionally weekly.

Your weekly figure is £148.84.

£148.84 x 45 (weeks) is £6697

Parkhall

Thanks a million. So one final question. Why am I being taxed for more than I actually received ?

p00hsticks

Parkhall said:

Thanks a million. So one final question. Why am I being taxed for more than I actually received ?

My understanding is that unlike other forms of income, as Dazed_and Confused says, with the state pension you are taxed on what you are entitled to, not necessarily what you have yet received. So if , for example you received a four weekly payment on 15th March 2022, and your next on 12th of April 2022, in the new tax year, then the first three weeks of the April payment will be taxed in year 2021-22 and the final week in 2022-23.

Parkhall

Yes that seems to be it. There are 45 weeks and 3 days between the date of my 66th birthday and the following 5th April.

So I am taxed for all 45 weeks including the last few weeks for which payment had not yet arrived.

Parkhall

Yes that seems to be it. There are 45 weeks and 3 days between the date of my 66th birthday and the following 5th April.

So I am taxed for all 45 weeks including the last few weeks for which payment had not yet arrived.