Tax Due - Next years pension paid this year

BikingBud

I have a pension that is due to pay on 6th of the month. 

I have been paid the payment due on 6 Apr 2025, a Sunday, today 4th Apr 2025. I am assuming therefore that it will fall within 24/25 PAYE and not next years income.

Or does the limitation of the banking system still reflect that the payment accrues next year?

Nomunnofun1

Unlikely to hit your bank until Monday 7th then. What is the payment date on the payslip/chit that you may have received?

chrisbur

The rule for payments like this due on a non-banking day but paid earlier is that the employer may if they wish treat the payment as being paid on the normal pay date (ie the Sunday) for tax purposes but for national insurance they must treat the payment as if it was made on the normal pay date (ie the Sunday)

I think it unlikely that the payment will be treated as paid on the Friday as I would assume that there will be many other payments most to pensioners who will have had their full tax allowance for this year and so could pay tax on all of their  pension, and the process would probably involve extra work treating tax one way and NI another way.

BikingBud

Nomunnofun1 said:

Unlikely to hit your bank until Monday 7th then. What is the payment date on the payslip/chit that you may have received?

I only get advice once per year, unless something changes, to inform the annual amount, the tax code and expected tax liability and then the monthly amount.

 Already in my current account and since shuffled out to interest gaining accounts.

BikingBud

chrisbur said:

The rule for payments like this due on a non-banking day but paid earlier is that the employer may if they wish treat the payment as being paid on the normal pay date (ie the Sunday) for tax purposes but for national insurance they must treat the payment as if it was made on the normal pay date (ie the Sunday)

I think it unlikely that the payment will be treated as paid on the Friday as I would assume that there will be many other payments most to pensioners who will have had their full tax allowance for this year and so could pay tax on all of their  pension, and the process would probably involve extra work treating tax one way and NI another way.

Thanks as its a pension payment no NI but reassuring to know that the "employer" can treat it as occurring on normal pay date.

It might be academic as I will pay the tax either way but it might give me a little more headroom next year to play with.

I suppose I will find out once the P60 comes out.

TheSpectator

Did you get a payslip for it? If so does it show the tax period?

molerat

What does your on line tax account show for the payment ? My 2 pensions always show as 13th and 28th irrespective of the date actually paid.

BikingBud

molerat said:

What does your on line tax account show for the payment ? My 2 pensions always show as 13th and 28th irrespective of the date actually paid.

Cheers always showing as 6th, I did get actual payments on: 4 Oct, 5 Jul, 3 May, its an AFPS75 payment which I think you also have so I trust it will be allocated on 6 Apr,