things deductable re tax credits

kerryallc71

I know , it drives me mad .. we've had 1 year where tax credits would not deduct his pension payments from the income figure i gave them , then last year we had a really nice lady from tax credits that understood ( i took her name ) , the trouble was i had not been giving them my husbands gross contributions that are on his legal & general stakeholder pension annual statement for years ive only been giving them the basic amount he's been paying each month . so we must be owed some back dated ( under paid ) tax credits , the nice lady from tax credits that understood said to work it out and calculate it up what we have missed over the years and get back to them , but it was finding and getting all of it together , so i said to her i don't think i would be able find it all , because it will all go back to whenever my husband started his stakeholder pension . which is a lot of years .

kerryallc71

i just found this ..

The employee’s contribution to the stakeholder pension scheme is made from the employee’s net pay – this means that it is deducted after tax, National Insurance and any other compulsory deductions have been made. Tax credits such as Working Tax Credit are not treated as pay and cannot be used to pay pension contributions from the payroll.
If the employee does not have enough net pay to allow you to deduct the full agreed amount for the stakeholder pension scheme provider, you don’t have to make a deduction. However, you can
make another arrangement (such as the employee paying as much as they can afford) if you,the employee and the scheme provider all agree.
If you need to decide which of several deductions to make from an employee’s earnings (for example, if their wages are not enough to cover all the deductions), stakeholder pensions are
classed as ‘voluntary deductions’. You must make statutory deductions (for example, tax and National Insurance) first, before voluntary deductions.
The employee’s contribution might reduce the amount of tax they pay or increase their Working Tax Credit, so they might want to check this with HM Revenue & Customs.
You will need to make sure your payroll system can cope with the deduction method you will be using. You will be responsible for making sure that the employee’s payment has been worked out correctly and sent to the scheme provider.