State Pension – Single Tier
STATE PENSION – SINGLE TIER The New State Pension was introduced for those reaching state pension age after 6th April 2016. This means: • Women born on or after 6.4.53, and • Men born on or after 6.4.51. Pensions in payment as at 6th April 2016 will not change and those starting work from this date will only ever have the new pension entitlement. Everyone retiring on or after 6th April 2016 will go through a revaluation exercise before 6th April 2016 to convert existing NICs records. Anyone can check their record as long as they are more than 4 months away from SPA by requesting a state pension forecast at: https://www.gov.uk/check-state-pension. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS Those with contracted-out service will get less than the new state pension amount of £179.60 (£175.20 from 6th April 2020, £168.60 from 6th April 2019, £164.35 from 6th April 2018, £159.55 from 6th April 2017, £155.65 from 6th April 2016), reflecting the contracted-out service, those with SERPS and/or S2P entitlements will get more. The new state pension will depend on an individual’s contribution only. This will affect not only UK residents but will also ensure that people living overseas who have not paid into the UK social security system cannot claim a state pension based on the National Insurance contributions of their spouse. Transitional arrangements will allow those reaching state pension age from 6th April 2016 to protect their entitlement to a pension based on their spouse’s record up to the start date of the new pension in April 2016 (for example women paying reduced rate National Insurance). A DWP Factsheet to explain the changes is available at:
https://www.gov.uk/government/publications/state-pension-fact-sheets .
TAX CREDITS The introduction of Tax Credits on 6th April 2001 was an extension of the transference of responsibility for the administration of a statutory benefit from central Government to employers first adopted with the introduction of Statutory Sick Pay (SSP) in 1983. Tax Credits were not an amount of income receivable without payment of tax (unlike personal tax allowances) instead they were a payment made as an addition to gross pay. Entitlement took the form of a working tax credit, if applicable including a childcare element and, again if applicable, the child tax credit. Both were subject to income limits which, when reached, reduced the amounts payable. No printing, copying or reproduction permitted. From April 2001 to March 2006 payment was made by the employer on a gross basis without application of statutory deductions and irrespective of any other pay entitlement. FromApril 2006 the payment of Tax Credits has been wholly administered and paid by HMRC. From April 2017 no further rates have been published in line with the migration of all tax credit recipients to the new Universal credit entitlement (see below).
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