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State Pension and tax Threshhold
Comments
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That makes a lot more sense, and it would be good if the papers, News outlets, Finance journos, and MPs would actually use those words
2 -
My state pension has been taxed for the last few years as it is over £12570. What irks me is the Tax calculation shown on the HMRC web site for my state pension shows it as £14497.08, yet my total state pension payments from the letter from HMRC (and what I am being paid) is £14482.24 (including the mysterious £10 that appears in my account each year) so a difference of £14.84 in their taxable favour. Why don't the figures ever tie up?
And why does it take so long for them to work out last year Tax, as it is computer generated it should be instantly available (or is there a little person sitting there with a calculator). Current prediction is October but it was Feb this year before it was available last year.
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The £10 is the Christmas bonus that isn't taxable.
The £14,497.08 has clearly been calculated on 'the HMRC website' as 52 x £278.79 per week. If you reached SPA on or after 6th April 2010 then that is a known HMRC mistake and it should be 51 weeks at the new rate and 1 week at the old rate.
Without knowing how you have derived your £14,482.24 it's hard to comment on that.
Remember state pension is taxed based on the amount you have accrued/are entitled to in the tax year, rather than the cash amount you actually have paid into your bank account during the tax year.
I came, I saw, I melted0 -
You are one of many. Somebody has to be first and somebody has to be last.
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submit online and the computer will instantly tell you what you owe.
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Are you replying to flatboydel888? Or the original poster?
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are you the forum police?
since it is not possible to edit a quoted post I saw no point in copying the entire poat when replying below your comment where you had done so
" why does it take so long for them to work out last year Tax,"0 -
It's a polite enquiry since you supplied no context for your comment.
Why are you making snarky comments about someone asking a sensible question?
Submit what online, where?
1 -
The figure of £14482.24 is from the letter I received telling me what my Pension payments will be, 1 at a reduced and the remaining 12 at the same value.
On the HMRC website it says I will be receiving £14497.08. So why is it different, clearly they don’t know what they are doing.
There are numerous discrepancies between what HMRC have on their website for my pension received compared to what I actually received for the year.0 -
You are comparing two different things here. I assume the "letter from HMRC" is actually the annual increase letter from DWP which in some cases gives the 4 weekly payment amounts - yes there are different increase letters even for post 2016 retirees - and is irrelevant for tax purposes as that gives the amounts to be paid in the tax year and not the amount due which is what your tax is based on. The amount paid in the tax year can be 4 old rate and 48 new rate but the tax code will be based on 1 old and 51 new. The amount shown on the front page of your tax account is 52 new.
Never associate with idiots on their own level, because, being an intelligent man, you'll try to deal with them on their level - and on their level they'll beat you every time.
Being hated by idiots is the price you pay for not being one of them.
Jean Cocteau 1889-1963
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