Taxing of State Pension

ColdIron

Stubod said:

I am suprised they don't give you an online option to do this???

You can do it here

https://www.manage-state-pension.service.gov.uk

Choose the 'Letter from the State Pension Team' option even if you didn't get one. There is no special code but there will be a series of questions to identify you

KevinG

Albermarle said:

KevinG said:

Marcon said:

KevinG said:

Not sure whether this is the right forum but I had to get this off my chest. I did my SA Tax Return online and reported the amount of State Pension I had received during the tax year (my pension started during 2023/24). I knew I would owe tax due to bank interest and when I submitted the return the figure owing agreed exactly with what I expected. But the amount they showed I owed was £105 higher and when I received the calculation in the post, sure enough the pension figure (including my company pension) was £525 higher. After a long conversation on the phone it was established that the discrepancy was in the State Pension part and the reason for this is that they take the weekly amount and multiply it by the number of weeks I was entitled to it during the year (21, as it happens) and use that figure, irrespective of whether I had actually received the money during the tax year. (They actually rounded up the number of pounds, which they shouldn't do, but that's only cost me 25p.) This is madness! Surely it's far simpler to use the actual payments made. 

Not really. You have the option of having your state pension paid weekly, fortnightly or monthly (and yes, you can change the interval once it's in payment), so it would actually be far harder to change the whole system to cater for tax on receipt rather than the current (perfectly sensible) 'entitlement' basis.

KevinG said:

This money is now lost forever as in future years I will be taxed on 52 or 53 weeks pension, irrespective of what I receive and declare on the Tax Return. Stupid system.

Don't understand the point you're making. If you've already been taxed on the 'extra' £525 then you won't be taxed on it again, so I can't see what money is now 'lost forever'?

I had no idea I could choose how often it was paid, I certainly wasn't given the option. We'll have to differ on how sensible it is, to me it is simpler to base it on payments actually made by the DWP. I take your point about the "extra" tax, in the long run it makes no difference. 

I have recently been invited to apply for my state pension. I was offered the choice of different payment times.

Maybe it was there on the application but if so I didn't see it. My choice would be monthly but that's not an option. 

double_dutchy

p00hsticks said:

Being pedantic (but important as the subject comes up quite a bit on this board) it's 'weekly, fortnightly or four-weekly', NOT 'monthly'. 

Just out of interest, which of these options would be best in terms of getting most money earlier or is it not clearcut?

molerat

double_dutchy said:

p00hsticks said:

Being pedantic (but important as the subject comes up quite a bit on this board) it's 'weekly, fortnightly or four-weekly', NOT 'monthly'. 

Just out of interest, which of these options would be best in terms of getting most money earlier or is it not clearcut?

Weekly.  As it is paid in arrears you have to wait an extra 3 weeks for the first week's payment when on a 4 week cycle.  Only every 4th week is paid "on time".

Stubod

ColdIron said:

You can do it here

https://www.manage-state-pension.service.gov.uk

Choose the 'Letter from the State Pension Team' option even if you didn't get one. There is no special code but there will be a series of questions to identify you

..ta for that...it works!! A bit protracted to actually get "signed up", but got there in the end....

Not sure why they tell you that you can't do it unless you have received a letter??...

poseidon1

ColdIron said:

Stubod said:

I am suprised they don't give you an online option to do this???

You can do it here

https://www.manage-state-pension.service.gov.uk

Choose the 'Letter from the State Pension Team' option even if you didn't get one. There is no special code but there will be a series of questions to identify you

Just tried the link, prior to forwarding to a friend due to receive her SP next month.

Unfortunately, the link does not work unless you have received a specific invitation letter from the State Pension team. There are three questions as to how you heard about the new service, if via friends/family or somewhere else, you are immediately barred from using the service, and told to phone or write to the team.

Would be useful to know how they select those who will receive the 'gilt edged' invite to use the new service. Perhaps in Beta stage of testing?

flaneurs_lobster

poseidon1 said:

ColdIron said:

Stubod said:

I am suprised they don't give you an online option to do this???

You can do it here

https://www.manage-state-pension.service.gov.uk

Choose the 'Letter from the State Pension Team' option even if you didn't get one. There is no special code but there will be a series of questions to identify you

Just tried the link, prior to forwarding to a friend due to receive her SP next month.

Unfortunately, the link does not work unless you have received a specific invitation letter from the State Pension team. There are three questions as to how you heard about the new service, if via friends/family or somewhere else, you are immediately barred from using the service, and told to phone or write to the team.

Would be useful to know how they select those who will receive the 'gilt edged' invite to use the new service. Perhaps in Beta stage of testing?

Just take the option that says you've received a letter. Works regardless. 

molerat

flaneurs_lobster said:

poseidon1 said:

ColdIron said:

Stubod said:

I am suprised they don't give you an online option to do this???

You can do it here

https://www.manage-state-pension.service.gov.uk

Choose the 'Letter from the State Pension Team' option even if you didn't get one. There is no special code but there will be a series of questions to identify you

Just tried the link, prior to forwarding to a friend due to receive her SP next month.

Unfortunately, the link does not work unless you have received a specific invitation letter from the State Pension team. There are three questions as to how you heard about the new service, if via friends/family or somewhere else, you are immediately barred from using the service, and told to phone or write to the team.

Would be useful to know how they select those who will receive the 'gilt edged' invite to use the new service. Perhaps in Beta stage of testing?

Just take the option that says you've received a letter. Works regardless. 

Ticked the received letter option and signed up successfully some time ago but it doesn't work for me

We cannot show your State Pension details

ColdIron

poseidon1 said:

ColdIron said:

Stubod said:

I am suprised they don't give you an online option to do this???

You can do it here

https://www.manage-state-pension.service.gov.uk

Choose the 'Letter from the State Pension Team' option even if you didn't get one. There is no special code but there will be a series of questions to identify you

Unfortunately, the link does not work unless you have received a specific invitation letter from the State Pension team. There are three questions as to how you heard about the new service, if via friends/family or somewhere else, you are immediately barred from using the service, and told to phone or write to the team.

You don't need a specific invitation letter to sign up, you just need to select 'Letter from the State Pension Team' anyway and it will move on to a series of questions to identify you. You are not barred, just go back and choose the top option

A couple of points for others trying this

I did wonder why the ID questions were necessary when I have had a Government Gateway ID for years but it seems this service is provided by the DWP and not HMRC and they are not as joined up as they could be

If you are not in receipt of a pension already (I will not be until next year) there is not much you can do as it seems to be to manage your pension. No pension, nothing to manage. Perhaps this is the meaning behind the 'letter'. I posted the link in response to Stubod who wanted to change the payment frequency to weekly and was looking for an online option instead of having to phone them up

I am hopeful that as my SP date approaches it will become useful to me without having to ring them. The ID questions are challenging and I'm happy to have them behind me. If you already have a SP it seems to be jolly handy

pinnks

molerat said:

flaneurs_lobster said:

poseidon1 said:

ColdIron said:

Stubod said:

I am suprised they don't give you an online option to do this???

You can do it here

https://www.manage-state-pension.service.gov.uk

Choose the 'Letter from the State Pension Team' option even if you didn't get one. There is no special code but there will be a series of questions to identify you

Just tried the link, prior to forwarding to a friend due to receive her SP next month.

Unfortunately, the link does not work unless you have received a specific invitation letter from the State Pension team. There are three questions as to how you heard about the new service, if via friends/family or somewhere else, you are immediately barred from using the service, and told to phone or write to the team.

Would be useful to know how they select those who will receive the 'gilt edged' invite to use the new service. Perhaps in Beta stage of testing?

Just take the option that says you've received a letter. Works regardless. 

Ticked the received letter option and signed up successfully some time ago but it doesn't work for me

We cannot show your State Pension details

My wife gets the same message - she tried just now to see if things had changed.  Weird, or what?