The Lemon Fool

The numbers on the HMRC personal tax account - state pension pages have been updated for this tax year.

I'm due the full flat rate and it now says "£203.85 a week, £886.38 a month, £10,636.60 a year".

Scott.

Wow - that's getting pretty close to the annual Income Tax threshold.

DrFfybes wrote:Wow - that's getting pretty close to the annual Income Tax threshold.

Of course if the threshold had gone up with inflation in the last 4 years or so it would now be about £15k.

Scott.

Under the triple lock it's increased by the greater of 2.5%, the increase in national average earnings (measured between May & July the previous year) and the consumer price index, which is (like pretty much all other CPI linked govt items) taken in the year to the previous September.

Last September's annual CPI increase was 10.1%, and was the highest of the three, so last year's £185.15pw * 1.101 = £203.85pw for this year.

Which is not as great as it sounds when you consider that the folks for whom the state pension is a large part (or even all) of their income, food is likely to be a significant part of their expenditure, and food inflation, as of the latest CPI figures (February), is running at 18.2%.

In my case HMRC’s figure is 52 times the weekly amount effective after 16 April 2022. This is wrong.

My UK state pension for the weeks ending 9 and 16 April 2022 were at the previous year’s lower rate.

To avoid these types of complications, the UK tax year for individuals should have been aligned with the calendar year long ago and certainly before international data sharing in accordance with the Common Reporting Standard (CRS) and Foreign Account Tax Compliance Act (FATCA)

Neutrino wrote:In my case HMRC’s figure is 52 times the weekly amount effective after 16 April 2022. This is wrong.

My UK state pension for the weeks ending 9 and 16 April 2022 were at the previous year’s lower rate.

To avoid these types of complications, the UK tax year for individuals should have been aligned with the calendar year long ago and certainly before international data sharing in accordance with the Common Reporting Standard (CRS) and Foreign Account Tax Compliance Act (FATCA)

Do you mean your UK state pension "earned" for the weeks ending 9 and 16 April 2022 or your UK state pension paid for those weeks?

Remember, it's paid 4 weeks in arrears, but HMRC taxes you on the amount you are due to receive for the year, which is not the same as what you actually receive in the year. Aligning the tax year with the calendar year won't make any difference to that.

swill453 wrote:The numbers on the HMRC personal tax account - state pension pages have been updated for this tax year.

I'm due the full flat rate and it now says "£203.85 a week, £886.38 a month, £10,636.60 a year".

Interesting. I am on the old State Pension. The DWP statement only ever gives a weekly figure, however it is paid out.

Of course, that then leads to... See posts above - and elsewhere on TLF! (I just reckon on the money I actually received in the Tax Year)

mc2fool wrote:

Neutrino wrote:In my case HMRC’s figure is 52 times the weekly amount effective after 16 April 2022. This is wrong.

My UK state pension for the weeks ending 9 and 16 April 2022 were at the previous year’s lower rate.

To avoid these types of complications, the UK tax year for individuals should have been aligned with the calendar year long ago and certainly before international data sharing in accordance with the Common Reporting Standard (CRS) and Foreign Account Tax Compliance Act (FATCA)

Do you mean your UK state pension "earned" for the weeks ending 9 and 16 April 2022 or your UK state pension paid for those weeks?

Remember, it's paid 4 weeks in arrears, but HMRC taxes you on the amount you are due to receive for the year, which is not the same as what you actually receive in the year. Aligning the tax year with the calendar year won't make any difference to that.

Yes, for income tax purposes it does not matter when you receive your SP. My accountant simply takes the weekly quoted figure and multiplies it by 52.