State Pension and tax code 2026/27

jem16

https://forums.moneysavingexpert.com/discussion/comment/81893904#Comment_81893904

As I said everyone always has 52 weeks of actual pension every year, forgetting 53 week years.

The tax code deduction depends on when you reach SPA though and since April 2010 that’s been 1 week of old rate and 51 weeks of new rate.

jem16

https://forums.moneysavingexpert.com/discussion/comment/81893912#Comment_81893912

There’s no accounting for why people worry but it’s usually because of not understanding tax. We do here and yes I am reassuring the worriers on the group but my reason for posting here was more to see how widespread this issue is. It didn’t happen last year for those reaching SPA in March 2025 so it all seemed odd.

badmemory

I think the real problem is that we see a lot on here of the DWP & HMRC getting it wrong. They have my state pension wrong for this coming year. On last years letter they mentioned that the last couple of weeks of the tax year I would get the extra 25p per week so they do know I will be 80 before this tax year ends. My new letter has no mention of the 25p. Yes a whole £13 a year but in December it could be another £100 (WFP). They get one thing wwrong & you start worrying what else they have wrong.

Marcon

There’s no accounting for why people worry but it’s usually because of not understanding tax. We do here and yes I am reassuring the worriers on the group but my reason for posting here was more to see how widespread this issue is. It didn’t happen last year for those reaching SPA in March 2025 so it all seemed odd.

Completely agree - and the often the hardest people to reassure are those who have no actual cause to worry in the first place!

If the reason for your post was to see how many others were having a similar experience, have you thought of speaking to MoneyHelper? They are likely to have had calls on the topic and might even have an answer which would help you to reassure people.

Contact info: https://www.moneyhelper.org.uk/en/pensions-and-retirement/state-pension

pinnks

I would just add that I am a March baby and reached SPA last year. As Jem16 says, the issue did not arise last year and for me has not happened this year as my code includes the correct amount of pension (I am not quite at the max). Something has gone pear-shaped in HMRC as they are clearly deducting SP of 51 weeks at the new rate when it should be 51+1. It will all drop out through PAYE in the end but should not be happening in the first place.

molerat

Long time pensioner here and both mine and MrsM's SP coded amounts for 26/27 are at the 51+1 rate. For me though they have, for the first time in a while, managed to get my code the same as I calculated - some of the income streams are wrong, correcting that won't affect the overall picture but will change the rate band adjustments to keep the code the same. Will have to wait and see what happens when they get the bank interest updates later in the year 🤑

jem16

https://forums.moneysavingexpert.com/discussion/comment/81894781#Comment_81894781

I’ve still to get my 26/27 tax code but those Scottish rate band adjustments are a pain in the neck!

badmemory

As the date change for 2026 is the 6th April, the first day of the new tax year, then it should be at 52 weeks for this tax year. Do all get the same date change? I await my new tax code with baited breath.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81894851#Comment_81894851

I noticed this a few days ago, slightly off topic but relevant for pensioner tax codes this year.

https://www.gov.uk/government/publications/agent-update-issue-140/issue-140-of-agent-update#fuel

molerat

https://forums.moneysavingexpert.com/discussion/comment/81894851#Comment_81894851

Yep. My base income makes me an intermediate rate payer but my SIPP input mitigates that. Last year they coded one of my pensions at SD0 with a double size rate adjustment to my main pension giving it a higher code than would be expected. This year they have only used SBR on the other streams.