State Pension and Self Assessment

jem16

Last tax year will be the first year I will have to include my state pension payments. Now I know that my tax code for 2023/24 is worked out using my weekly state pension at 51 weeks on the new rate and 1 week on the old rate. I am also aware that the state pension is taxable on entitlement as opposed to on receipt.

However just a couple of questions.

1. Is the Self Assessment pre populated with my state pension payments as my other pensions are?

2. Do I just accept that figure if it is or change it if I know it's not correct? For example 2023/24 is a 53 week year and not the usual 52 week year.

Which leads to another question on the tax code for 2023/24

It's been based on 51 weeks of new and one week of old. That's fine but this year is a 53 week year so will make that calculation wrong. Is it worth updating the amount on my Personal Tax Account or should I just leave it?

Dazed_and_C0nfused

1.  Normally yes.  Not guaranteed to be correct though, particularly for the first year of State Pension.

2.  You can correct or if it's wrong.  But have never heard of HMRC wanting to tax 53 weeks.

You're just asking for trouble there.

jem16

Dazed_and_C0nfused said:

1.  Normally yes.  Not guaranteed to be correct though, particularly for the first year of State Pension.

2.  You can correct or if it's wrong.  But have never heard of HMRC wanting to tax 53 weeks.

You're just asking for trouble there.

I have no wish to make trouble with HMRC but just wondered what was expected when completing the SA and knowing I had 53 weeks of pension. If I put down the amount for 52 weeks then technically I’m wrong in my SA. 

xylophone

https://www.youtube.com/watch?v=H9zOPUq87zU

[Deleted User]

Hi,

here's an old thread might help explain.

jem16

xylophone said:

https://www.youtube.com/watch?v=H9zOPUq87zU

Following that guidance it only mentions 52 weeks. How odd as you wouldn’t think HMRC would happily forego the tax on the extra week. 

Still leaves me filling in a SA with information on 52 weeks that I know isn’t correct. 

[Deleted User]

Hi,

I'm confused, how do you get a 53 week year, 1st Jan to 31 Dec or tax year 6th April to 5th April?

[Deleted User]

There may be 53 payment dates in a tax year but state pension is taxed on an accruals basis. Generally it’s 1 x old rate plus 51 x new rate. 

jimmo

frugalmacdugal said:

Hi,

I'm confused, how do you get a 53 week year, 1st Jan to 31 Dec or tax year 6th April to 5th April?

Each person's State Pension payday is determined by their NI number.When is the state pension paid? - Saga

 As 6 April was Thursday this year roughly one fifth of pensioners will be entitled to 53 weeks pension.

jimmo

jem16 said:

xylophone said:

https://www.youtube.com/watch?v=H9zOPUq87zU

Following that guidance it only mentions 52 weeks. How odd as you wouldn’t think HMRC would happily forego the tax on the extra week. 

Still leaves me filling in a SA with information on 52 weeks that I know isn’t correct. 

HMRC obtain their State Pension date from DWP and in 10 years of being a pensioner not once have I been able to reconcile the figures used in my Coding with my own reckoning. Its never out by much but it is always out.
If you ask HMRC they will almost certainly tell you to contact DWP. and if you can find anyone in DWP to help on this you will do much better than me.
If I had to do SA I would declare the figure used by HMRC in my coding.. 

jem16

[Deleted User] said:

There may be 53 payment dates in a tax year but state pension is taxed on an accruals basis. Generally it’s 1 x old rate plus 51 x new rate. 

I'm actually counting the accruals. For tax year 2023/24 my first accrual is 6th April 2023 and my last accrual is 4th April 2024 which makes 53 weeks.

That's assuming accrual means what I think it means. I'm paid 4 weekly but have counted the dates it would be paid if I was paid weekly.

EDIT - Just thinking on what you said there. My payment on 6th April 2023 is actually covering the previous 7 days so only that one day on 6th April would have been accrued in this tax year. Perhaps this is why it's technically discounted? Only problem with this thinking is that the DWP don't count pro rata weeks, it's simply weekly. That's why my increase doesn't start till 14th April this year even though the state pension increases from 10th April.