Just checking my father-in-law's tax affairs at the end of the tax year. He is 97, and I have Power of Attorney for him. He receives an occupational pension, and a state pension. The tax code on his occupational pension is adjusted to allow for his state pension. PAYE usually gets everything correct, and he isn't asked to submit a tax return.
His state pension is paid weekly on Thursdays. Tax year 2006/7 began and ended on a Thursday - and thus had 53 of them. So he received 53 weeks worth of pension in the tax year, but his tax code was calculated on the basis of
52 weeks.Does that mean that, technically, he owes the tax man 22% of one week's state pension? I'm certainly not going to tell the tax man - and chances are that it will go unnoticed.