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Which tax year do I declare this in?
Comments
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1018TX this year and 1155T next yet the payee has used some other unknown code.
The offset is against another DB that comes without tax deduction.
I also have a part time wage at BR
Your life is too short to be unhappy 5 days a week in exchange for 2 days of freedom!
One can always make more money. No one who has ever lived can create more time.0 -
Strange. Maybe a different code was originally going to be used for next year but that has been superceded by 1155T 🤷♂️
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So a DB payment payable on 6th was in my bank on Thursday 2nd. If it is credited for 25/26, the payment will trip me to higher tax rate and reduce interest allowance.
Provided the company has followed HMRC precedent then it will be assigned against 26/27 i.e. next year. I have the exact same situation and it always gets put into month 1 of the following tax year even when due to weekends etc an April 6th payment gets paid early. I think you'll only see it in the tax portal when we get to April 6th.
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Pension payments will be reported to HMRC via the payer through RTI. Part of that reporting includes specifying the payment due date which is used for tax reporting
Given that 6th April is a bank holiday I would expect payments due on 6th to have been sent to arrive on the 2nd as pension providers should ensure payments are received on or before the date that they were due.
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That confuses this even further. In the NS&I app the interest capitalisation is on the 1st April….
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I think that all you can do is wait until the account statements are available (if NS&I provide those on income bonds, I'm not sure?), and then decide which tax year that interest falls in.
To be fair you did state in the first post that your normal interest payment day is the 5th. So if weekends and bank holidays were not involved, it would have been normally paid on the last day of the tax year.
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That’s not confusing, it answers your question: it was paid in and arises for tax in the 25/26 tax year.
As I mentioned earlier, when it arrives in your current account isn’t relevant. This will be a timing error caused by the time it takes for e.g., a Bacs payment to reach your nominated account.
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Do you have access to the DB Pension payslip?
If you do, there will usually be a "Period number" included. That will be the tax month that the payment falls in.
Those tax months are 6th to 5th every month. So if your scheme normally runs payroll on the 6th of each month, the payment on 6th April 2025 will be period 1, and the payment on 6th March 2026 will be period 12. That would then mean that this latest payment must be period 1 in the new tax year.
On the other hand, your pension scheme might run payroll on the 5th each month, and maybe the bank transfer takes 1 day to arrive. This means that period 1 would be 5th May 2025, and period 12 would be 5th April 2026 (which could be paid earlier due to the weekend and bank holiday).
If you don't have the payslip for the current payment, you can usually work this out from a previous payslip.
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Nope they don't issue monthly only when something changes!
It will be a point of contention when I call on Tuesday that something has changed, they've applied a different tax code and it is no good sending revised pay slips after the reduced payment has been paid as the planning cannot occur.
Your life is too short to be unhappy 5 days a week in exchange for 2 days of freedom!
One can always make more money. No one who has ever lived can create more time.0 -
Yes, most DB pensions only send a pay slip when there is a change to the payment amount, and if it's only provided by post it could take a while to arrive.
However you should have a payslip from earlier this tax year, even if it is the first one in the tax year.
That should contain enough information to tell how the tax month applies to each monthly payment going forward.
On any previous pay slip, you need to check: 1) Date and 2) Period
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