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Posted Mon, 16 Jan 2023 17:04:10 GMT by Brian
When including state pension on a tax return it is always assumed by HMRC that, for tax purposes, a full quota of thirteen 4-weekly payments have been received at the rate prevailing for the tax year concerned. In actual fact, in my case at least, the first payment of the tax year, (the April payment), is paid at the rate prevailing during the previous tax year. As a consequence, each year, I have to pay a little more tax than I should. I have taken this up with DWP, who referred me to HMRC, who then referred me back to DWP. I'm not talking big bucks here. It's the principle of this regular, small, overpayment of tax. Any advice on how to get this rectified would be appreciated.
Posted Tue, 17 Jan 2023 13:11:40 GMT by Bob Olivier
Hi. I am non resident and looking to increase my NI contributions to increase my pension. I am able to see from my Gateway Account "Check you State Pension forecast how much I can pay for each year. What it does not explain is how to pay and what reference to give when payment is made. I have made payments in the past so I do have a reference from before. Will this work. My wife is in a similar situation but has has not made previous payments. What is also not clear is that if I make some of the back payments, but not all, how does it allocate to each year - oldest or most recent? Finally, what is also not clear is how much each additional payment will increase my Forecast and whether payment in full will achieve the Maximum available. Your help appreciated.
Posted Fri, 20 Jan 2023 12:13:17 GMT by HMRC Admin 20
Hi Brian,

Please see the following under 'UK pensions, annuities and other state benefits received
How to fill in your tax return (2022)

Thank you.
Posted Fri, 20 Jan 2023 12:18:40 GMT by HMRC Admin 20
Hi Bob Olivier,

Have a look at the guidance on class 3 NIC at (Voluntary National Insurance).  
You can also arrange to pay any voluntary NIC using the guidance at (Pay voluntary Class 3 National Insurance).

Thank you.
Posted Fri, 20 Jan 2023 12:42:35 GMT by Brian
I complete my self-assessment on-line. In the state pension section, the instructions are to enter the amount of annual pension that one is entitled to. My point is, that by using that figure, in my case at least, it is always greater than the amount actually received. Therefore, when all the sums are done relating to income, my overall income is less by the difference between the entitlement and the actual amount received, whereas I am taxed on the entitled pension. I know the difference in tax is small, but, as I said, it's the principle of this I object to. Why can't we just enter the actual amount received? That would eliminate the issue. Many thanks Brian
Posted Tue, 24 Jan 2023 15:14:56 GMT by HMRC Admin 17

Using the entitlement amount is the method used for both Self Assessment and PAYE .

We can't comment on why the entitlement figure is used over actual amount received .

Thank you.

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