I have just received a HMRC P800 calculation advising I owe them an amount of tax for 2016/17 tax year. I started receiving my state pension in July 2016 and it turns out that the discrepancy is due to HMRC using my state benefit entitlement for the tax year instead of the lower figure of actual state pension received due to being paid 4 weekly in arrears. i.e. I received the last 3 weeks of my 2016/17 state pension entitlement in the first payment in the next tax year 2017/18. HMRC have advised that I must obtain confirmation of state pension received in 2016/17 from DWP before they will amend their records.
When I contacted the DWP verbally I was told that DWP could only confirm my state pension entitlement for 2016/17 and that it was right that I had to pay tax on the full amount in tax year 2016/17 - I am awaiting this to be confirmed in writing.
Does anyone have any experience of this situation ? Its only a relatively small amount of just over £100 but why should I have to pay tax in 2016/17 for income received in the following tax year ?
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