State Pension Arrears

Please see the following message which we are sharing on HMRC’s behalf. Guidance will be published on GOV.UK on 19 April.

The Department for Work and Pensions (DWP) began in August 2020 to make State Pension arrears payments to individuals who had been underpaid. This work will continue until December 2024.

HMRC will be assessing affected Self-Assessment clients to establish if additional tax is due. HMRC will only collect income tax for the current tax year and the previous 4 tax years.

A dedicated team will assess these cases from 11 April 2023 and issue letters to customers who have an additional tax liability. A copy of the letter will also be issued to authorised agents.

Customers who passed away before the date DWP paid the arrears will not be charged tax.