self employed deferred pension

Linton

xylophone said:

Do you have any authoritative reference for backdating the post 2016 SP for 12 months as opposed to deferring?  

https://www.rights4seniors.net/content/claiming-state-pension-0

A claim for State Pension can be back-dated for up to 12 months from the date you claim.

Once a claim is made, you will receive details of how much your pension should be. If you disagree with the decision, you can ask for the decision to be reconsidered or you can appeal.

 Looking at the above, in terms of claiming state pension, there appears to be no differentiation between the old and new in terms of the one year backdating rule?

The OP can check with the Pension Service.

If she is expecting to have some reliance on the SP from the time she retires, it would be as well to get on with the claim as soon as possible?

Yes claiming now could well be prudent.  Also it would be useful if the OP could let us know the answer!

Linton

On the question regarding tax - the amount of tax for which the OP is liable is dependent on the total income over the tax year including earnings, State Pension, any non-state pensions, and presumably any lump sum rather than assignable to specific incomes.  So working for the first 2 months of the tax year (not 4) means more tax simply because there is a higher total income in the year.  But of course the higher income from working would be significantly greater than the extra tax. I cant see any special factors arising.

 To give actual numbers we would need to know the OPs projected incomes for this year..

calcotti

Pat38493 said:

But this rule is probably designed for if you intended to claim the pension at a certain point but you forgot to fill the form in, or were unable to for some reason.  This is different from deliberately deferring it?

It’s simply a delayed claim - it doesn’t matter what the reason is.

calcotti

Linton said:…was looking for something more definitive as it is not stated elsewhere (eg ageuk) 

https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs19_state_pension_fcs.pdf

Page 9

Linton

calcotti said:

Linton said:…was looking for something more definitive as it is not stated elsewhere (eg ageuk) 

https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs19_state_pension_fcs.pdf

Page 9

Thanks - I just looked at their summary info. Still would be nice to have it specified in .gov.uk.   Presumably the lump sum is taxed in the tax year it was paid.  I can't see HMRC backdating the tax as well.

calcotti

I think the arrears payment (which is what it is) can, as I understand it, be allocated to the tax years in which it accrued if it is to your advantage.
https://www.gov.uk/hmrc-internal-manuals/self-assessment-manual/sam121160
Thete are other posters who will I am sure be able to say much more on this.

(incorrect advice - see corrections below.)

Marcon

calcotti said:

I think the arrears payment (which is what it is) can, as I understand it, be allocated to the tax years in which it accrued if it is to your advantage.
https://www.gov.uk/hmrc-internal-manuals/self-assessment-manual/sam121160
Thete are other posters who will I am sure be able to say much more on this.

Not for state pensions. The opening sentence confirms: 'This guidance relates to personal pensions.'

Dazed_and_C0nfused

calcotti said:

I think the arrears payment (which is what it is) can, as I understand it, be allocated to the tax years in which it accrued if it is to your advantage.
https://www.gov.uk/hmrc-internal-manuals/self-assessment-manual/sam121160
Thete are other posters who will I am sure be able to say much more on this.

It will be taxable in the tax year the pension is payable for, not all in the tax year it is paid.

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim75700

calcotti

Thanks Marcon and Dazed. I did think SP was allocated to the year in which it was accrued but then confused myself with that bit of the manual which I referred to and missed that it didn’t apply to SP! Thanks, both.

xylophone

Co-incidentally, this came up today


https://www.thisismoney.co.uk/money/pensions/article-11680503/Delaying-state-pension-Steve-Webbs-five-golden-rules.html