PAYE76015 - PAYE operation: pensioners: basis of charge

Pensions are chargeable on the entitlement for the year rather than the amount actually received. Usually these two amounts will be the same but there are some exceptions

• An occupational pension is paid in advance. The Employment Income Manual tells you what to assess when a pension is first received and in the year of death
• Overpaid state pension is recovered by the Department for Work and Pensions (DWP). See PAYE76135 for further information
• The pensioner draws state pension 4 or 12 weekly in arrear. The Employment Income Manual tells you how to assess this