Tax credits, are you allowed pension payments?

crockpot

Our income has dropped quite a bit in last year and will be ring tax credits up on mon to make sure we get what we should.

But just woundering are you allowed to take your pension contributions off?

ie salary £20k pension £900 so income £19100?

Trying to sort figures out


Thanks

Marcheline

Hi, I don't believe you can take off pension payments (I never have done anyway) As far as I can recall the form asks for gross income, therefore you cannot take off pension payments. If you have a look at the guidance notes again (I know, they'd drive you mad! Or they do me anyway!) it should make it clear. Hope this helps.

[Deleted User]

Yes, you deduct your pension contributions.

You are allowed to do this because when you receive your pension you would declare it as a taxable income to tax credits.

http://www.hmrc.gov.uk/forms/tc600-notes.pdf Page 20-21

hotblu

Hello

Just to point out, you cannot take off pension contributions if they are being deducted by employer at time of pay. You can only deduct contributions you make using your net pay.

HTH

Hotblu