does money in a pension count towards savings and affect WTC
dharm999
Posts: 559 Forumite
Asking for a friend, as I dont understand the benefit rules and having googled it am still none the wiser. If someone has money in a private pension, does that count as savings when claiming WTC?
Friend is also looking to pay more in to a pension, as she is 62, and has no provision for a pension other than state pension. She has a pension forecast that says she will get full state pension. She works full time, and gets money for her disability, DLA I believe at the lower level, as she has eyesight problem that limit her vision and eventually she will lose all her sight.
She is looking at putting money in to a pension, but is not sure how it would affect her benefits. Currently she does not claim anything other than DLA, but is a low earner. She looked on the entitledto website and that said she would be entitled to around £20/week of WTC.
Would any money she puts in to a private pension reduce any WTC she might be entitled to?
Thanks for your help
Friend is also looking to pay more in to a pension, as she is 62, and has no provision for a pension other than state pension. She has a pension forecast that says she will get full state pension. She works full time, and gets money for her disability, DLA I believe at the lower level, as she has eyesight problem that limit her vision and eventually she will lose all her sight.
She is looking at putting money in to a pension, but is not sure how it would affect her benefits. Currently she does not claim anything other than DLA, but is a low earner. She looked on the entitledto website and that said she would be entitled to around £20/week of WTC.
Would any money she puts in to a private pension reduce any WTC she might be entitled to?
Thanks for your help
0
Comments
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Pensions aren't savings. When she starts to receive a pension then it would be treated as income.0
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She has seen this?
https://www.entitledto.co.uk/help/tax-credit-pension-contributions
https://www.gov.uk/guidance/tax-credits-working-out-income
Has she obtained a new state pension statement?
https://www.gov.uk/check-state-pension0 -
https://www.entitledto.co.uk/help/tax-credit-pension-contributions
"Gross pension contributions are deducted from pay before calculating earnings for the purposes of tax credits.....
.....Full relief is given for pension contributions......"Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.0 -
Regarding my current WTC claim, my pension contributions to an auto enrol People's Pension Scheme have been excluded this year from my deductible income as they are being made to an occupational pension scheme and not a private pension scheme. They have been included in previous years, so have the benefit rules been changed? I pay a little more than the minimum % and have no other pension scheme. I am concerned that if I stop my payments now then I would have wasted the few years that I have been paying. The payments have always been entered as actual amount shown on payslip as deducted from net salary. Reading the above I believe this should have been grossed up so perhaps I should have received a little more WTC in the past. I am finding it difficult to source clear information on this subject.0
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auto enrol People's Pension Scheme
https://thepeoplespension.co.uk/employees/being-a-member-of-the-peoples-pension/grow-your-pension-pot/tax-relief-on-your-pension/
https://www.litrg.org.uk/tax-guides/employed/pensions-and-employees/what-automatic-enrolment-employees#toc-i-receive-state-benefits-if-i-join-a-pension-scheme-how-will-these-be-affected-0 -
Thank you. I do not know why it has been disregarded by HMRC unless they have changed the rules. I will appeal.0
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