State pension income for tax purposes

Chrissie430

DWP have provide my state pension income figure for 24/25 to HMRC which is £700 more than I actually received. I received my state pension at the end of Nov 2024. Is there a formula for agreeing DWP calculation?

Dazed_and_C0nfused

Chrissie430 said:

DWP have provide my state pension income figure for 24/25 to HMRC which is £700 more than I actually received. I received my state pension at the end of Nov 2024. Is there a formula for agreeing DWP calculation?

HMRC aren't interested in what you actually received.  They are interested in your State Pension entitlement.

And they seem to work in whole weeks so you should probably be being taxed on 18 or 19 weeks for the current tax year.

If you provide some actual details it should be possible to check if everything is working as intended from HMRC's perspective.

molerat

State pension is taxable when due, not when paid so your April payment will most likely include pension due in the previous tax year.  You need to work out the number of each weekly due days in the tax year.

Marcon

Chrissie430 said:

DWP have provide my state pension income figure for 24/25 to HMRC which is £700 more than I actually received. I received my state pension at the end of Nov 2024. Is there a formula for agreeing DWP calculation?

Any chance you received a payment just after 5 April 2025, bearing in mind that state pensions are paid in arrears? When you come to check your 25/26 figure, remember they are paid at four-weekly intervals rather than monthly, so there are 13 payments in the year to account for, not just 12 (more than 13 payments if you've asked for weekly or fortnightly payments, obviously!).

Qyburn

Chrissie430 said:

DWP have provide my state pension income figure for 24/25 to HMRC which is £700 more than I actually received. I received my state pension at the end of Nov 2024. Is there a formula for agreeing DWP calculation?

Do you receive it four weekly?  If so then there could be up to three weeks of your first 2025/6 payment, that would have fallen in 2024/5 if you'd chosen weekly.

From what I saw HMRC go further still. I was paid weekly but they still overestimated the first year. I received an initial part week, followed by whole weeks until the end of the tax year. HMRC's figure assumed my first payment was a full week.