Taxation of State Pension commencing mid year

[Juggernaut]

Spouse reached state pension age in June. We received an amended tax credit certificate shortly afterwards. Tax credits and bands are being adjusted by the full annual amount of pension, even though it will only be paid for six months.

Revenue say this is their standard procedure and that any overpayment of tax can be recouped by doing return at end of year!

Anyone else experience this?

Thanks

 

[S class]

My experience has been the complete opposite. In both my case and my wife's case, no adjustments to credits and bands were made in the first partial year. The bands and credits were only adjusted in the second and complete tax year. I am self assessed in ROS. Last year I sent a request to revenue to adjust the bands and credits. They answered saying it would be done when they decided. No adjustments were made for that year.

 

[torblednam]

Spouse reached state pension age in June. We received an amended tax credit certificate shortly afterwards. Tax credits and bands are being adjusted by the full annual amount of pension, even though it will only be paid for six months.

Revenue say this is their standard procedure and that any overpayment of tax can be recouped by doing return at end of year!

Anyone else experience this?

Thanks

Have you checked whether the new certificate is on a Week 1 Basis, rather than cumulative, as that would make more sense.

 

[DB74]

My experience has been the complete opposite. In both my case and my wife's case, no adjustments to credits and bands were made in the first partial year. The bands and credits were only adjusted in the second and complete tax year. I am self assessed in ROS. Last year I sent a request to revenue to adjust the bands and credits. They answered saying it would be done when they decided. No adjustments were made for that year.

This has also been my experience with several clients. Eerlier this year I contacted Revenue about it for one particular client, Revenue said to contact Dept of Social Welfare as they have to inform Revenue and when I contacted the Dept they say to contact Revenue as they have nothing to do with tax

Passing the buck at its finest

Not only that but you can log in to My Account on Revenue to let them know about a myriad of other incomes so as to have your tax credits adjusted automatically but you can't let them know about the State Pension on My Account

 

[Juggernaut]

Yes, it's on a Month 1 basis. However, won't we still be overpaying tax each month until the end of the year?

Am I missing something?

Thanks