Pensions & WTC

mum_2_ellis

Just a quick one

Do I need to tell the Tax credits when I start paying into a pension scheme? I have literally made my first payment this month and was just wondering if I should be telling them.

Thanks in advance

zagfles

Yes.

Is it a personal pension or through your employer?

mum_2_ellis

its through the employer - I have never paid into a pension before so thats as much as i know! ha ha - does this make a difference?

zagfles

mum_2_ellis wrote: »

its through the employer - I have never paid into a pension before so thats as much as i know! ha ha - does this make a difference?

It will reduce your income for tax credits purposes either way. If it's via your employer it will (nearly always) reduce your taxable income so you'll pay less tax and your taxable income will be lower. So when you get your P60 pension conts will already be deducted. With a personal pension you have to work it out yourself.

You can tell TCO this now and your payments may go up a bit, or you could wait till renewal and get a lump sum. But probably won't be a big difference (could be nothing if you only get the family element).

mum_2_ellis

thanks very much zag flies - if I waited for lump sum, would I have to contact them or is it calculated at renewal time?? thanks again x

zagfles

No it would automatically happen when you do the renewal and give your income figures. Remember to use your P60 income whic should have pension conts deducted.