Tax credits and pension

adolphin10

According to the HMRC website and the guidance they send annually I can deduct my grossed up pension payments from my annual salary. According to the help line I have the 'wrong sort' of pension! I have a personal pension which my employer deducts from my net wage and pays over instead of me receiving it and then paying over.

The regulations say personal pension can be deducted so I should be able to would you agree?

thanks

zagfles

Yes you have the "wrong sort" of pension and this will cause you major hassle trying to get TCO to accept the deduction .

The problem is that the vast majority of work pensions are deducted from gross pay, so the P60 amount already has the pension payments deducted. So TCO simply say as a general rule "don't deduct pension payments made through your employer/wage slip". Otherwise you'd get people deducting the same thing twice.

But a few work pensions are a stakeholder type where the contribution is deducted from your net pay and the P60 amount is not reduced by these contributions.

If you are sure this is the case (if it is you'll get annual statements from your pension provider showing your contribution plus tax relief which they claimed off HMRC) then you'll need to write to them with evidence such as wage slips, P60, and statement from your pension scheme. Don't waste your time talking to them as you'll get nowhere.

adolphin10

zagfles wrote: »

Yes you have the "wrong sort" of pension and this will cause you major hassle trying to get TCO to accept the deduction .

The problem is that the vast majority of work pensions are deducted from gross pay, so the P60 amount already has the pension payments deducted. So TCO simply say as a general rule "don't deduct pension payments made through your employer/wage slip". Otherwise you'd get people deducting the same thing twice.

But a few work pensions are a stakeholder type where the contribution is deducted from your net pay and the P60 amount is not reduced by these contributions.

If you are sure this is the case (if it is you'll get annual statements from your pension provider showing your contribution plus tax relief which they claimed off HMRC) then you'll need to write to them with evidence such as wage slips, P60, and statement from your pension scheme. Don't waste your time talking to them as you'll get nowhere.

Yes these are the problems I have had!! I work for a payroll company and whilst I don't claim to know everything about pensions I do know a bit (more than the call centre anyway!)

I will do as you have suggested

thanks