ekr
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RE: State Pension and Self Assessment
Responding to Sidwell's comment above (and just also a general query). I get my State Pension paid monthly. Every year, in the calculation of tax due versus tax paid, HMRC calculate my State Pension to be the weekly amount (notified in the letter received from the Dept for Works & Pensions each March) multiplied by 52. This is of course an overestimate since some of the April payment is at the previous year's rate. I always therefore, every year, actually receive less State Pension than I am taxed on. Yes, I could correct the taxable amount each year in the Self Assessment Form but my query is what about those who never complete such a form - maybe don't even know such a thing exists. Or do know, but don't go through their bank statements tallying up State Pension payments, so don't know the amount included in their Tax Code is wrong. Am I right in thinking that this is a clear bias or glitch where HMRC is consistently (it never goes the other way) collecting more tax than due. Surely this should never have been allowed to happen in the first place. If I'm wrong, please tell me.