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  • RE: Tax on state pension and work pensions in the first year of retirement

    I started to get my state pension in Nov 23 part way through the tax year 23/24. It's 17th of April 2024 into a new tax year and my payslip from my pension provider is showing a lower amount of net pay than I was expecting. I checked the tax code applied and I don't recognise it. I have a tax account with HMRC so I look to see what's going on. HMRC say, without identifying the specific tax year, that I have underpaid tax and my tax code needs to reflect that. What's odd about this is that HMRC also say I paid the right amount of tax for 22/23 but that my tax for 23/24 has not yet been calculated. Given that my tax has not yet been calculated for 23/24 why is my tax code taking a hit now? There can only be one source of tax underpayment and that will be 23/24 and related to the tax deducted by my pension provider as my tax code for 23/24 changed due to receipt of state pension. Given all that has been said above about how receipt of state pension flows through to how tax is deducted from pensions provided by pension schemes how can significant underpayments arise?
  • RE: Retrospectively claiming NI credits

    If one of the benefits not claimed was child benefit wouldn’t that be one for HMRC to clarify?
  • RE: Retrospectively claiming NI credits

    Hi Thank you HMRC Admin 8 for your reply which unfortunately is not very helpful. Perhaps if I might just add a bit more detail to my circumstances I did in fact submit a Child Benefit Claim form in October 2022 electing at the same time not to receive any payment of Child Benefit (CB). The Child Benefit Office (CBO) subsequently confirmed I was ‘entitled’ to child benefit (and in consequence NI credits) starting in July 2022 rather than from the month of my daughter’s birth in March 2021. The CBO refuses to back date a claim for CB any more than 3 months from the date of receipt of the CB claim form. I am therefore being denied NI credits for the period March 2021 to July 2022 simply because I failed to submit, within 3 months of March 2021, the CB claim form to claim a benefit I know I would not be entitled to keep due to the High-Income Child Benefit Charge. How a benefit can ever be described as an ‘entitlement” when it cannot be kept is quite beyond me! On Wednesday 10 January 2024, Jeremy Hunt, the Chancellor said and I quote "we've made it possible for people to claim the national insurance pension credits retrospectively. He didn’t say “..we are going to make it possible to claim national insurance pension credits retrospectively. So my question remains – specifically how do I claim these pension credits retrospectively now? None of links you included in your reply answer this question or provide the means to do so. That said I would draw you attention to the following – https://www.gov.uk/government/publications/tax-simplification-update-january-2024/tax-simplification-update-january-2024 Under the heading Amending the parents’ National Insurance Credit (Child Benefit) it reads “…As announced on 27 April 2023, the government will legislate to introduce a route for people to apply for National Insurance Credits for parents and carers for tax years where they have not claimed Child Benefit, to ensure that people do not miss out on their State Pension entitlement. The credit will add qualifying years of National Insurance where eligible which will support future State Pension eligibility. Individuals will be able to claim this Credit from April 2026. The eligibility for the Credit will be closely based on Child Benefit eligibility criteria. Transitional arrangements will ensure those affected since 2013 are still able to claim. Going forward, applications will be available for 6 years following the relevant tax year. The government will bring forward secondary legislation as soon as possible…” I have 2 questions which flow from this 1. Will I qualify to claim NI Credits for March 21 to July 2022etrospectively, and 2. When can I do this?
  • RE: Retrospectively claiming NI credits

    I've recently discovered that I have missed out on NI credits because I did not claim child benefit when my first child was born in March 2021 (my partner's income meant the high income child benefit tax would apply and we would not keep a single penny of the child benefit so there seemed zero point claiming child benefit). I've just discovered the press were reporting that the Government announced in April it would enable eligible parents who have not claimed child benefit to apply for National Insurance credits retrospectively. On the Martin Lewis show broadcast on Wednesday 10 Jan 2024, Jeremy Hunt, the Chancellor was asked about the unfairness of the child benefit tax. He said it was under review but also said and I quote "we've made it possible for people to claim the national insurance pension credits retrospectively"(see 25 mins into the show). My question is this - how do I claim these pension credits retrospectively.
  • RE: Tax on state pension and work pensions in the first year of retirement

    I will start to receive my first payment of state pension on 24 November 2023, My current taxable allowance/tax code is 1263L and this is utilised 100% in relation to my first private pension. The current maximum state pension is £205/week (£10,660 per annum). I will get £191/week (£9975/annum). In the tax year to 5 April 2024 (23/24) that means I will actually receive only 6 months of state pension £191 x 26weeks = £4,966. Which of £10,660, £9975 or £4966 will be used to reduce my tax code in the current tax year and in what month/pay period can I expect that to happen?
  • RE: Specified Adult Childcare Credits

    My granddaughter was born on 27 June 2023 and when my daughter returns to work in January 2024 I will start to take care of my granddaughter. In the tax year 23/24 this means I care for just part of the year 27 January 2024 to 5 April 2024. Will the credits that transfer to me from my daughter in that tax year be sufficient to qualify that year as a full year for the purposes of my state pension or will the credits transferred be insufficient leaving me to pay for any outstanding balance for that year.
  • RE: Why post 31 October for SACC claims

    Hi HMRC Admin 20. Thank you for your reply. I've just been looking at the HMRC guidance on running a PAYE payroll and it appears to suggest that employers are required to submit Full Payment Submissions (which includes National Insurance details/payments) on or before the date on which employees get paid. It would seem to me that the overwhelming majority of employers will comply with filing requirements for PAYE and so the NI contribution history for employees will be known to HMRC very shortly after the end of a relevant tax year. What prior tax year employer declaration relating to national insurance is not due until 31 October? Or put another way, where can I find the regulatory reference that permits HMRC to say to claimants of SACC - don't file until after 31 October ? This delay when taken with the fact that it's taking 53 weeks for HMRC to deal with applications for SACC (see Martin Lewis ITV 13 June and the comment from Laura Trott, Minister for pensions) means that mistakes with applications can go undiscovered for too long.
  • Why post 31 October for SACC claims

    The application form for Specified Adult Childcare Credits requests that claimants should wait until the 31 October following the end of the relevant tax year before submitting the claim (eg for tax year 21/22, the claim should be submitted after 31 October 2022). Why is this? For the vast majority of people the NI class 1 history of the employed person from whom the credits will be transferred will be known by HMRC by 31 March (ie in terms of a year being a qualifying year). The employed person's pay slip for the March will inform the year to date NI position. Why the built in delay?