State Pension and tax code 2026/27

Marcon

Yes I know that and you know that but the people involved don’t necessarily see it that way. HMRC should accept the taxpayer’s own figures of requested but they’re refusing to do so and it cannot be changed in the App or via the Gateway.

The tax code is just that: a code. It doesn't necessarily dictate the amount of tax due in a tax year. State pension income is taxable on an 'accruals' basis (ie when it is due), but the PAYE system works on an 'arising' basis (when the money is actually received). Anyone can ask for their state pension to be taxed on the 'statutory' basis in preference to the PAYE approach.

Have a look at the first few pages of this thread for more information: https://forums.moneysavingexpert.com/discussion/6610482/civil-service-pension-tax/p1

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81893728#Comment_81893728

I think the additional information @Jem16 has now provided shows this is simply a timing issue, there is no reason for anyone to do anything but wait for an updated tax code, shortly after their State Pension actually starts.

molerat

https://forums.moneysavingexpert.com/discussion/comment/81893699#Comment_81893699

If your income is not subject to assessment later you will actually get £39 tax free through PAYE.

jem16

https://forums.moneysavingexpert.com/discussion/comment/81893728#Comment_81893728

Yes I know how the state pension is taxed and also that the tax code doesn’t determine the final amount of tax due. I’ve spent a lot of time helping people understand exactly that on the group I refer to.

It’s just that we’re now getting a lot of questions about this wrong amount being used in the tax code so people are noticing the issue.

jem16

https://forums.moneysavingexpert.com/discussion/comment/81893752#Comment_81893752

That’s what we’re now saying to people affected by this and to let us know.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81893784#Comment_81893784

👍

badmemory

I have just received my new state pension amount & it reads to me as if the new payment WILL be for 52 weeks. It says from 6th April - the new amount will be included in the payment on or after this date.

Am I right that this means 52 weeks?

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81893811#Comment_81893811

Received what from whom?

badmemory

Received the letter from the DWP which comes every year about my state pension for April. Of course they have missed off my 25p over 80 payment but I can worry about that later.

I don't know if this helps but the letter ref is BR5899.

jem16

https://forums.moneysavingexpert.com/discussion/comment/81893824#Comment_81893824

The actual state pension amount is always over 52 weeks. What’s being discussed is how it’s deducted in the tax code.