Calculating yearly state pension?

janbeno

Hi, could anyone here tell me whether I multiply the weekly amount of state pension by 52 or 53 to get the yearly amount, or do I multiply by 4 then 12 or 13?

Thanks in advance.

  

Linton

It depends for what purpose you want to calculate the annual state pension.  A correct mathematical way that could be used to compare one year with another is to divide the weekly amount by 7 and multiply by 365.25 (being the average number of days in a year*).  However the tax calculation would be different.

*not quite exact if one takes into account that the year xx00 may or may not be a leap year.

janbeno

I need to add the total yearly pension together with hubbys works pension to get an idea how much extra tax he'll be paying as I'm trying to work out how much extra pm we will have available.

Linton

janbeno said:

I need to add the total yearly pension together with hubbys works pension to get an idea how much extra tax he'll be paying as I'm trying to work out how much extra pm we will have available.

Probably easiest to use my formula - it should be right within a week.  Otherwise to be 100% accurate every year I fear (but havent thought it through) things could get very complicated with 52 and 53 week years and what day of the week SP is paid.

janbeno

Linton said:

janbeno said:

I need to add the total yearly pension together with hubbys works pension to get an idea how much extra tax he'll be paying as I'm trying to work out how much extra pm we will have available.

Probably easiest to use my formula - it should be right within a week.  Otherwise to be 100% accurate every year I fear (but havent thought it through) things could get very complicated with 52 and 53 week years and what day of the week SP is paid.

Thanks Linton. It needn't be exact it's just to get an idea how much we will have after the increase and the extra tax taken out. Thanks so much for taking the time to help it's really appreciated.

xylophone

I need to add the total yearly pension together with hubbys works pension to get an idea how much extra tax he'll be paying as I'm trying to work out how much extra pm we will have available.

He is just about to draw his state pension?

https://www.litrg.org.uk/tax-guides/pensioners/types-income-retirement#:~:text=The state pension is taxed,you receive a new pension.

https://s3.amazonaws.com/thegovernmentsays-files/content/179/1799028.html

janbeno

xylophone said:

I need to add the total yearly pension together with hubbys works pension to get an idea how much extra tax he'll be paying as I'm trying to work out how much extra pm we will have available.

He is just about to draw his state pension?

https://www.litrg.org.uk/tax-guides/pensioners/types-income-retirement#:~:text=The state pension is taxed,you receive a new pension.

https://s3.amazonaws.com/thegovernmentsays-files/content/179/1799028.html

No xylo,he's been getting state pension for a couple of years. Thanks for the info though

molerat

For tax purposes HMRC use 1 week old and 51 weeks new.

Linton

molerat said:

For tax purposes HMRC use 1 week old and 51 weeks new.

But every few years there is a 53 week tax year.  How is that handled? Or do HMRC just work on those values regardless of how much SP was actually paid (or accrued) in a year?

janbeno

molerat said:

For tax purposes HMRC use 1 week old and 51 weeks new.

Linton said:

molerat said:

For tax purposes HMRC use 1 week old and 51 weeks new.

But every few years there is a 53 week tax year.  How is that handled? Or do HMRC just work on those values regardless of how much SP was actually paid (or accrued) in a year?

That's why I asked as I was confused, but as I only need a roundabout figure to give me a rough idea of how much extra tax will be taken Lintons workings will work fine. I have got a rough idea of the extra tax now and how much disposable we'll have. 

Thanks all for your inputs

GibbsRule_No3.

Is this a bit like when we have a Leap Year and they ask people to donate the wages to charity for that day?  (Even though technically if you are on a yearly wage it probably already means you work a day without getting paid).