State Pension & HMRC

Sarasa

Is it my responsibility to inform HMRC that I have been in receipt of my state pension since July? My code number hasn't yet been changed. Thank you.

Dazed_and_C0nfused

Shouldn't be no, though there have been a couple of posts from people where there has been a delay in it being included in tax codes.

Maybe give them a ring if no change in a week or two?

sheramber

DWP will notify them but it may take a while until HMRC update your records. They seem to have a back log of work.

Phoning when lines first open usually works to get an answer without a long wait.

SiliconChip

Have you checked your Personal Tax Account to see if the correct code has already been allocated to your state pension? Mine shows that the codes for my personal pensions have been allocated since I stopped work at the end of July (no state pension until 2024) but the August pay for both pensions still hadn't used the new codes - I've assumed they will be used for the September payments but time will tell.

Billxx

No, you should not need to.  If you are in receipt of other pensions then HMRC will calculate your tax code and send that to the provider of your other pensions.  You do not pay tax on your state pension, it is taken from your other sources of income.  Apologies if you already knew this.

RG2015

Sarasa said:

Is it my responsibility to inform HMRC that I have been in receipt of my state pension since July? My code number hasn't yet been changed. Thank you.

I had the same issue. I had to speak to HMRC on another issue and took the opportunity to inform them of my state pension.

This was about two months after I started receiving my SP. They had heard nothing from DWP and I had to give them the figures. They changed my tax code and they are now deducting the SP tax from my company pension.

They are collecting 12 months of tax over 10 months. If it had been further delayed my monthly tax deduction would have been higher.

HMRC had previously told me that I did not need to do anything as they would sort everything out with DWP.

It is therefore down to you, but be prepared for a tax liability that will  be increasing on a monthly basis. I believe that there is a limit how much they can deduct per month and I doubt they could expect you to pay a large lump sum in one go. That might mean your tax code for 2023/2024 could be increased to collect unpaid tax for this year.  

sheramber

While you shouldn't need to, if you don't want to rack up an underpayment then chasing it up would be appropriate.