Client receives £196 state retirement pension, includes adult increase for his 56 year old wife. He is entitled to Pension Credit, but each year he has to pay income tax on his state pension of around £200 equivalent to around £4 per week.

In effect he is being underpaid pension credit by £4 a week, but I can't see anyway of getting this back!

Any ideas?

is he filling in annual tax return?

i wonder if he'd be best writing to his local tax man and querying the position, filling in a new annual return and seeing what happens.

as for getting it back.... if it turns out he has overpaid then I think (not 100% certain) that he can get back max 6 years worth....

Yes, he submits an annual self assessment tax return, and unfortunately the adult dependent increase included in his state pension, takes the annual amount well above the personal tax allowance level.

His wife is 56, but will not qualify for her own state pension for another 6 years; when she does qualify, of course my clients own pension will then fall below the tax allowance threshhold and he will no longer pay tax.

I have appealed one of these and Newcastle sent it back to Warrington for them to implement, still waiting months later and have complained.

Basically Pension Credit is a calculation based on income net of tax, see reg 17 (10) Pension Credit regulations 2002.
See also CIS 1067/2004. There is some guidance issued following this but I couldn't seem to get to paste it to this note, it's DMG letter 04/05 from February 2005.

Good luck

Thanks for that Ant. I'll get right on it.

Ant, I've found the DMG letter; perfect. Thanks a lot.

You need to site CIS/1067/2004. DM's have received guidence on this but still choose to ignore. I have spent 9 months with such a case using our MP etc and finally to ICE re the maladministration. Swansea DWP have admitted they advised the client incorrectly on several occasions and will now correct the assessment and make a consolatory payment for the maladministration.

What appals me is that this is common practice even though in there own literature they advice that you should inform them if you are taxed on your RP as this will effect the assessment!! When in reality they take no notice if you do inform them. Please read below my take on this injustice!

Some low income pensioners Particularly single women, have been
Misdirected by the DWP!

Pension Credit is being incorrectly assessed taking into account gross State Pension, when some individuals, without any other taxable income have to pay income tax.

Pensioners enquiring about this situation are being told their calculation is correct. This is misdirection since the DWP are failing to implement the law as defined in Commissioners Decision CIS/1067 /2004.

Single women in particular have missed out on amounts equal to the income tax paid (until the recent tax changes). There is surely a need for DWP to review this situation and reimburse all the affected clients and to consider compensation as a result of misdirection. Many clients will have made telephone enquires about this but their records will not be noted to this effect as they will have accepted the incorrect information given at the time of the call.

Advocates and advisers who are well aware of the law have also been brushed aside and it is impossible to speak to a decision maker to get cases reviewed.