Claiming my State Pension

westv

Outeast1000 said:

And is it ok to use the code that was sent to me in the original invitation letter ? Or do I have to apply for a new one ? to claim my SP 

I would say try it and see what happens.

nottsphil

Dazed_and_C0nfused said:

Outeast1000 said:

Brie said:

la531983 said:

I believe you can defer it for 11 months and get it all backdated at the current rate (little benefit to this tbf), or defer it for an unspecified period and get 1% extra per week for each 9 weeks you defer by.

As for Metro bank, deposits up to £85k are protected anyway and the State Pension isnt anywhere near that amount.

having it backdated can be a right nightmare particularly if you are on income based benefits.  getting a backdated lump sum would require a lot of benefits to be paid back.

I am going to claim my SP sometime in the next two months so it will be backdated about eight months .In what way can it be a right nightmare ? i am not on benefits i am working full time and hope to keep working for as long as i can 

Also is it OK to use the original invatation  code that i recevied or do i have to apply for a new one ?

Don't forget to budget for the tax you will owe for the past 8 months.

According to the MSE guide, OP's SP was automatically deferred because he still hasn't claimed it. In fact the guide repeats it several times, so I'm quite stumped that nobody seems to have mentioned this throughout the thread. This means OP's tax will only increase for the part of the tax year after they claim SP, which will be at a higher rate to compensate for the deferment. 
(Ignore the second screenshot, which I cannot edit out.)

molerat

nottsphil said:

Dazed_and_C0nfused said:

Outeast1000 said:

Brie said:

la531983 said:

I believe you can defer it for 11 months and get it all backdated at the current rate (little benefit to this tbf), or defer it for an unspecified period and get 1% extra per week for each 9 weeks you defer by.

As for Metro bank, deposits up to £85k are protected anyway and the State Pension isnt anywhere near that amount.

having it backdated can be a right nightmare particularly if you are on income based benefits.  getting a backdated lump sum would require a lot of benefits to be paid back.

I am going to claim my SP sometime in the next two months so it will be backdated about eight months .In what way can it be a right nightmare ? i am not on benefits i am working full time and hope to keep working for as long as i can 

Also is it OK to use the original invatation  code that i recevied or do i have to apply for a new one ?

Don't forget to budget for the tax you will owe for the past 8 months.

According to the MSE guide, OP's SP was automatically deferred because he still hasn't claimed it. In fact the guide repeats it several times, so I'm quite stumped that nobody seems to have mentioned this throughout the thread. This means OP's tax will only increase for the part of the tax year after they claim SP, which will be at a higher rate to compensate for the deferment. 
(Ignore the second screenshot, which I cannot edit out.)

OP states

I am going to claim my SP sometime in the next two months so it will be backdated about eight months

so it seems they want the arrears paid in a lump sum rather than the increased pension which will mean tax needs paying on that lump sum.

woolly_wombat

molerat said:

nottsphil said:

Dazed_and_C0nfused said:

Outeast1000 said:

Brie said:

la531983 said:

I believe you can defer it for 11 months and get it all backdated at the current rate (little benefit to this tbf), or defer it for an unspecified period and get 1% extra per week for each 9 weeks you defer by.

As for Metro bank, deposits up to £85k are protected anyway and the State Pension isnt anywhere near that amount.

having it backdated can be a right nightmare particularly if you are on income based benefits.  getting a backdated lump sum would require a lot of benefits to be paid back.

I am going to claim my SP sometime in the next two months so it will be backdated about eight months .In what way can it be a right nightmare ? i am not on benefits i am working full time and hope to keep working for as long as i can 

Also is it OK to use the original invatation  code that i recevied or do i have to apply for a new one ?

Don't forget to budget for the tax you will owe for the past 8 months.

According to the MSE guide, OP's SP was automatically deferred because he still hasn't claimed it. In fact the guide repeats it several times, so I'm quite stumped that nobody seems to have mentioned this throughout the thread. This means OP's tax will only increase for the part of the tax year after they claim SP, which will be at a higher rate to compensate for the deferment. 
(Ignore the second screenshot, which I cannot edit out.)

OP states

I am going to claim my SP sometime in the next two months so it will be backdated about eight months

so it seems they want the arrears paid in a lump sum rather than the increased pension which will mean tax needs paying on that lump sum.

In which case the OP might like to reconsider and take the higher income instead (additional 1% per week for each 9 weeks deferred).
That would mean

1. Avoid paying tax on backdated lump sum
2. Benefiting from a slightly higher State Pension for the rest of their life

Outeast1000

molerat said:

nottsphil said:

Dazed_and_C0nfused said:

Outeast1000 said:

Brie said:

la531983 said:

I believe you can defer it for 11 months and get it all backdated at the current rate (little benefit to this tbf), or defer it for an unspecified period and get 1% extra per week for each 9 weeks you defer by.

As for Metro bank, deposits up to £85k are protected anyway and the State Pension isnt anywhere near that amount.

having it backdated can be a right nightmare particularly if you are on income based benefits.  getting a backdated lump sum would require a lot of benefits to be paid back.

I am going to claim my SP sometime in the next two months so it will be backdated about eight months .In what way can it be a right nightmare ? i am not on benefits i am working full time and hope to keep working for as long as i can 

Also is it OK to use the original invatation  code that i recevied or do i have to apply for a new one ?

Don't forget to budget for the tax you will owe for the past 8 months.

According to the MSE guide, OP's SP was automatically deferred because he still hasn't claimed it. In fact the guide repeats it several times, so I'm quite stumped that nobody seems to have mentioned this throughout the thread. This means OP's tax will only increase for the part of the tax year after they claim SP, which will be at a higher rate to compensate for the deferment. 
(Ignore the second screenshot, which I cannot edit out.)

OP states

I am going to claim my SP sometime in the next two months so it will be backdated about eight months

so it seems they want the arrears paid in a lump sum rather than the increased pension which will mean tax needs paying on that lump sum.

What % tax would I have to pay on a lump sum 
 ? 

molerat

It would simply be taxable income for the year it is due in, some will be due in 23-24,  so whatever rate is applicable to your personal circumstances.

Dazed_and_C0nfused

Outeast1000 said:

molerat said:

nottsphil said:

Dazed_and_C0nfused said:

Outeast1000 said:

Brie said:

la531983 said:

I believe you can defer it for 11 months and get it all backdated at the current rate (little benefit to this tbf), or defer it for an unspecified period and get 1% extra per week for each 9 weeks you defer by.

As for Metro bank, deposits up to £85k are protected anyway and the State Pension isnt anywhere near that amount.

having it backdated can be a right nightmare particularly if you are on income based benefits.  getting a backdated lump sum would require a lot of benefits to be paid back.

I am going to claim my SP sometime in the next two months so it will be backdated about eight months .In what way can it be a right nightmare ? i am not on benefits i am working full time and hope to keep working for as long as i can 

Also is it OK to use the original invatation  code that i recevied or do i have to apply for a new one ?

Don't forget to budget for the tax you will owe for the past 8 months.

According to the MSE guide, OP's SP was automatically deferred because he still hasn't claimed it. In fact the guide repeats it several times, so I'm quite stumped that nobody seems to have mentioned this throughout the thread. This means OP's tax will only increase for the part of the tax year after they claim SP, which will be at a higher rate to compensate for the deferment. 
(Ignore the second screenshot, which I cannot edit out.)

OP states

I am going to claim my SP sometime in the next two months so it will be backdated about eight months

so it seems they want the arrears paid in a lump sum rather than the increased pension which will mean tax needs paying on that lump sum.

What % tax would I have to pay on a lump sum 
 ? 

It isn't a "lump sum" for tax purposes.

DWP will tell HMRC your State Pension award amount from the date you start to be entitled to receive it based on your claim i.e., 8 months ago.

And HMRC will then tax it based on the amount you were entitled to each tax year.  So if the 8 months goes back to say mid December 2023 you will have ~16 weeks taxable in 2023-24.

nottsphil

woolly_wombat said:

molerat said:

nottsphil said:

Dazed_and_C0nfused said:

Outeast1000 said:

Brie said:

la531983 said:

I believe you can defer it for 11 months and get it all backdated at the current rate (little benefit to this tbf), or defer it for an unspecified period and get 1% extra per week for each 9 weeks you defer by.

As for Metro bank, deposits up to £85k are protected anyway and the State Pension isnt anywhere near that amount.

having it backdated can be a right nightmare particularly if you are on income based benefits.  getting a backdated lump sum would require a lot of benefits to be paid back.

I am going to claim my SP sometime in the next two months so it will be backdated about eight months .In what way can it be a right nightmare ? i am not on benefits i am working full time and hope to keep working for as long as i can 

Also is it OK to use the original invatation  code that i recevied or do i have to apply for a new one ?

Don't forget to budget for the tax you will owe for the past 8 months.

According to the MSE guide, OP's SP was automatically deferred because he still hasn't claimed it. In fact the guide repeats it several times, so I'm quite stumped that nobody seems to have mentioned this throughout the thread. This means OP's tax will only increase for the part of the tax year after they claim SP, which will be at a higher rate to compensate for the deferment. 
(Ignore the second screenshot, which I cannot edit out.)

OP states

I am going to claim my SP sometime in the next two months so it will be backdated about eight months

so it seems they want the arrears paid in a lump sum rather than the increased pension which will mean tax needs paying on that lump sum.

In which case the OP might like to reconsider and take the higher income instead (additional 1% per week for each 9 weeks deferred).
That would mean

1. Avoid paying tax on backdated lump sum
2. Benefiting from a slightly higher State Pension for the rest of their life

And therefore pay slightly more tax for the rest of their life.
The only advantage I can see in avoiding the  the lump sum is if the tax it attracts pushes them onto the higher band for this year.

westv

I'm not sure if having to pay more tax should be a reason not to choose a higher lifetime income.

nottsphil

westv said:

I'm not sure if having to pay more tax should be a reason not to choose a higher lifetime income.

Me neither. I was simply challenging a post which implied there would be a tax advantage if the pension was deferred.