State Pension Tax Return: DWP Figures May Differ from Actual Payments
UKPulse Money Desk
Individuals receiving state pension payments every four weeks may find the annual figure supplied by the Department for Work and Pensions (DWP) to HMRC differs from the amount actually received.
- State pension income is taxable and is paid gross.
- The burden of income tax on state pension is applied to private pensions.
- DWP supplies HMRC with an annual figure based on the weekly rate multiplied by 52 weeks.
For individuals receiving state pension payments every four weeks, the total amount received over a year may not align with the annual figure supplied by the Department for Work and Pensions (DWP) to HMRC. The DWP's supplied figure is calculated as the weekly rate multiplied by 52 weeks.
State pension income is taxable, but it is always paid gross. Any income tax due on this pension is instead applied to private pensions held by the individual.
In cases where state pension payments began part-way through a tax year, such as for the 2025-2026 tax return, the figures may not be automatically uploaded to online tax accounts. In such instances, individuals are advised to review their bank statements and manually calculate the total income received.
Why this matters: Discrepancies between DWP-supplied figures and actual state pension receipts could lead to errors in tax returns if not accounted for.
What this means for you: If you receive your state pension every four weeks, you may need to manually verify the total amount received against the figure supplied to HMRC for your tax return. If your state pension started part-way through a tax year, you may need to add up income from bank statements for your tax return.