nearly66

Hello Clive Smaldon, HMRC's SA form SA150 notes pg 6 box 8 describes how to calculate the pension as usually one week at old rate and 51 at new rate and it is only for certain pre 2010 pensioners that it is 52 times new rate. For part years it does not say what to do with the few extra days received at commencement. I find tax codings tie up perfectly using these formulas for whole years. I would always advise including the few extra days at the commencement of pension and find Gary C's paragraph above the best summary.

Gary C, Thank you for the reply and the well written explanation. That is how I have calculated mine, but I had not submitted my return yet, but will now do so. You have obviously done a lot of research. It is a shame HMRC can't give such a clear explanation or agree to your above paragraph, but maybe they can now do so on here. Thanks again.

I have been following this thread and have now come to complete my Self Assessment tax return for 2023-24, having started my state pension in that tax year. Yes, there is a pre-popoulated figure for state pension, which only considers whole 4 weekly payments, i.e it does not include the few days paid at the start before the 4 weekly amounts kick in. Nor does it include the days after the last 4 weekly payment in the tax year. The pre-populated figure is therefore clumsy and inaccurate and could be programmed to be very precise if HMRC wanted to. You can amend the pre-populated figure and then you are prompted to explain why you have done so in the white box that follows. This white box ends up on your tax return as Box 19 "Any other information" on SA100, so you have evidence of what you have said. EIM75700 - The taxation of pension income: social security pensions says: "the taxable amount is the amount of pension accruing in the tax year. This may be different from the amount actually paid in a tax year" Yes, I agree. So my question to HMRC is surely the "pension accruing" should be calculated on a daily basis, from your 66th birthday date, or 6 April, to 5 April. It is easy to work out your daily rate and multiply this by the number of days. HMRC needs to confirm "pension accruing" is on a daily basis as there can be no other definition.

Hi, I am seeking clarification on EIM21885 - the annual cost of the benefit should include "additional expenses". A company makes its computers available for private usage. It has now paid its ISP £100 upfront for 6 years of internet hosting, for which there is some private usage. Should the benefit in the current tax year for these additional expenses be based on the whole £100 or should it be spread out over 6 years (£16.67 pa)? If the former, then years 2 to 6 would have no charge despite there possibly being some private usage in those years. I cannot find further explanation in HMRC's manual and ITEPA 2003 s205 does not help much either. Thanks

I paid voluntary class 3 NI in August 2022 for the current tax year. As it was not showing in my personal tax account for 2022-23, I phoned the NI helpline today (at 8am!), and the chap said it had been received ok and allocated already. My questions are: 1. When does one's personal tax account get updated - is it after the end of the tax year? 2. How can you get an up to date pension forecast if your personal tax account is not up to date, as the forecast showing is one year behind? 3. I was told that six months before you retire, the HMRC NIC records are transfered to the DWP. This would be true for myself as I retire in 4 months time - does this explain why my personal tax account is not showing the current year contributions, because HMRC are no longer maintaining it? The chap said HMRC and DWP see the same records as each other so there's no point me ringing the DWP. Perhaps admin can help?