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Deferred State Pension

Relevant Tax Year - based on dates or receipt?

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State pension was deferred.

It was taken in Feb 2020, back dated to Feb 2019. My initial assumption was that as the first payment was received Feb 2020, the full amount from start to 5.4.20 would be taxed in 2019/20. Having had a look, I now think the amount relating to Feb 2019 - 5.4.19 should be taxed in 2018/19 and the amount relating to 6.4.20 - 5.4.20 should be taxed in 2019/20.

It seems very odd though that the 2018/19 tax return had been completed and filed before notification was received of the amount that related to Feb 2019 - 5.4.19, so there is no choice but to amend the 2018/19 return and have tax paid late - is this correct?

Thanks for clarification.

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By Wanderer
13th Jul 2020 21:24

Have a good look at the paperwork.
If the 'backdated to Feb 2019' element is in fact arrears then yes, part is taxable in 2018/2019 rather than when received.

Thanks (1)
RLI
By lionofludesch
14th Jul 2020 10:07

It's based on entitlement, so the old rate is taxed in the old year and the new rate is taxed in the new year.

Thanks (1)
RLI
By lionofludesch
14th Jul 2020 10:10

Suppose I'd better ask about this deferral.

Was it actually deferred ? Or claimed late ?

As far as I know, deferral means you claim from a time after your retirement date in return for a bigger weekly pension.

Thanks (3)
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By RB
14th Jul 2020 10:23

Thanks both.
Yes, deferral, and entitlement starts from Feb 2019.
It just seems odd to have a situation where it appears impossible to have got the 2018/19 return correct by the filing date.
(Unless there was some paperwork prior to the award notice issued Feb 2020, that I haven't seen.)
I suppose it is only Feb and March claims where this will be the case.

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Replying to RB:
RLI
By lionofludesch
14th Jul 2020 10:39

RB wrote:

Thanks both.
Yes, deferral, and entitlement starts from Feb 2019.
It just seems odd to have a situation where it appears impossible to have got the 2018/19 return correct by the filing date.
(Unless there was some paperwork prior to the award notice issued Feb 2020, that I haven't seen.)
I suppose it is only Feb and March claims where this will be the case.

What was his official retirement date ?

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Replying to lionofludesch:
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By RB
14th Jul 2020 10:51

State pension age was reached Nov 2016.
Award notice dated Feb 2020, states pension payable from Feb 2019.

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Replying to RB:
RLI
By lionofludesch
14th Jul 2020 11:47

Ah. Both late and deferred.

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