I have an issue with the amount declared by DWP to HMRC for State Pension in the 2012/2013 Tax Year.
DWP have declared an amount for this benefit which does not relate to the amounts actually received.
The final payment received for the tax year was on 1 April, but because the benefit period straddles the end of the tax year on 5 April, DWP are insistent that the amount due for the period 2-5 April should be included in the amount which they declare to HMRC even though this not paid until the 2013/2014 tax year.
DWP say this is what 'the guidelines' dictate.
I have disagreed strongly stating that tax is only due on income received not on what is notionally due.
I am sure this situation must have arisen with other forum users so would appreciate any feedback which they may have regarding this.
TIA
DWP have declared an amount for this benefit which does not relate to the amounts actually received.
The final payment received for the tax year was on 1 April, but because the benefit period straddles the end of the tax year on 5 April, DWP are insistent that the amount due for the period 2-5 April should be included in the amount which they declare to HMRC even though this not paid until the 2013/2014 tax year.
DWP say this is what 'the guidelines' dictate.
I have disagreed strongly stating that tax is only due on income received not on what is notionally due.
I am sure this situation must have arisen with other forum users so would appreciate any feedback which they may have regarding this.
TIA