Inherent annual incorrect reporting of State Pension by DWP to HMRC

pinnks

https://forums.moneysavingexpert.com/discussion/comment/81950246#Comment_81950246

What you receive in a tax year is irrelevant as you must enter the amount accruing in the tax year, i.e. the number of benefit weeks ending in the tax year, not some measure of the number of 4-weekly payment received. Generally you will have 52 benefit weeks ending in the tax year and generally that will be 1 week at the previous-year's rate and 51 weeks at the current-year's rate.

See S578 Income Tax (Earnings and Pensions) Act 2003 "… the taxable pension income for a tax year is the full amount of the pension… accruing in that year irrespective of when any amount is actually paid."

badmemory

https://forums.moneysavingexpert.com/discussion/comment/82020435#Comment_82020435

Exactly. This year is the very first year that the HMRC figure has been correct at 52 weeks at the new rate as my payday is the Friday. Not bad out of 15 !!

pinnks

Why would 52 weeks be correct?

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/82020663#Comment_82020663

It is for some older people. In some years.

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye76030

badmemory

Pay day Friday 24th April. Received 1 at the old rate for 3rd April (in the last tax year) & 3 at the new rate for 10th, 17th & 24th April (all in the new tax year).

pinnks

https://forums.moneysavingexpert.com/discussion/comment/82020683#Comment_82020683

Yes, I get that but @badmemory is paid on a Friday, so the payment on 10 April would be for the week starting on 4 April and thus also at the old rate, or am I missing something?

badmemory

I thought the basic state pension was paid Monday to Friday.

pinnks

It is paid on one of Monday to Friday but it accrues over a 7-day week.

badmemory

Well unless it is because Monday 6th was a bank holiday I don't have a clue, but I definitely got paid the new rate on the 10th because I had to change the figure from what I expected into the bank into what I actually received. But my NI number indicates that my payday should be Wednesday not Friday, but I assume that was because I deferred it for a few years.

pinnks

That makes no sense as all of those days are Fridays, so where does Wednesday suddenly come from?