State Retirement or Old Persons Pension

• How is this screen accessed

  

  

Enter the details of the pension received, or of the likely receipt if the pension is to start during the following tax year.

The State Pension age for women born between 6 April 1950 and 5 April 1955 will increase gradually to 65 between now and 2020.

From 6 April 2020 the State Pension age will be 65 for both men and women.

Use the table below to determine when the state pension will be received:

• State Pension lump sum payments entered into box 8 (2007 : 11.1B) do not form part of the total taxable income on the tax computation.  This is because personal allowances cannot be offset against this type of income.  Instead the income will be shown further down the computation and form part of the Income Tax Due section.   

This is in accordance with the HMRC worksheet.  The section for National Insurance Remitment Pension paid as lump sum shows how the tax is calculated for income within box c19.33: "If c5.5 or c5.14 or c5.18 is greater than zero then enter 40% in box c19.34 otherwise is c3.28 is greater than £2150 then enter 22% in box c19.34 otherwise enter 10% in box c19.34"  The worksheet does not deduct personal allowances when arriving at the tax due on this income.  

The tax paid on this source of income will form part of the tax deducted at source.

Do not enter details of: Additions to the state pensions received because of a dependent child or the Christmas bonus!

• Type, click the magnifying glass to select from the following list of options:

•  0    Unspecified

•  1    Retirement pension

•  2    Old person's pension

• The 'old person's pension' is used to denote a non-contributory retirement pension.

• Description - IRIS will automatically complete this filed based on the type of payment a description may also be entered manually

• Date payment started - if the date is within the current tax year it will be used to reduce the annual amount computed, enter a date that is in the following tax year to obtain a tick in box 22.1.

• Frequency of payments - click the magnifying glass to select from the following list of options.

Weekly       Quarterly      Half yearly

4-Weekly    Annually

Monthly      Unspecified

• Payments per frequency - enter the amounts paid per time period listed above for the current tax year and the following year if known, if not known leave this field blank.

• Annual amount - this is computed automatically by Iris by multiplying the payments per frequency by the frequency of payments.

Lump sums (from 2007)

• Gross Amount - enter the gross amount of any lump sum state pension payments which have been received.

• Tax Taken Off - enter the amount of tax deducted from any lump sum state pension payment which have been received.

Up to 2001, If date payments started is after the end of the tax year then an entry will be made in box 23.1. Enter a frequency and amount for next year; leave the annual amount blank.