Can anyone help......tax credits, I'm a widow and my dh's pension is being

twoflower169

Counted as income rather than a pension, is this right?

My dh passed away nearly 2yrs ago now, and when I informed tax credits, they stopped payments and then I re-applied as a single parent which was painful as it was only days after his death. At the time they never took his pension from his employer into account as income for me it was declared on the form though as a pension (which I am taxed for at source), they never questioned this, I also receive parental widows allowance as I'm not old enough to qualify for a widows pension (I'm 36), which I get taxed through my paye tax code.

This year however they wanted extra info as I had been picked to check details, and they wanted proof of my childcare costs as they had changed twice in the tax year due to me returning to work (after maternity leave, I was pregnant when my dh had his accident), so I sent them all the info they requested, with this years renewal form and they wrote back saying they didnt agree and that my dh's pension was to be calculated as part of my income, and they had detected this as they knew from my tax records that I was paying tax on another income other than my employer.

I questioned this with the investigating person and having checked with her manager she said they were right it was part of my income......and that I could appeal, I decided not to at the time, I've been struggling with my life with my two small children of late and didn't want another battle, I'm now about to weigh up the pros and cons of giving up work and need to contact tax credits to get an estimate of my possible tax credits award if I do not work (just until my youngest goes to school) and I'm now wondering if this pension should or not count.

Sorry it's so long winded!

Thanks for any help
Tf xx

BigAunty

http://www.hmrc.gov.uk/taxcredits/start/claiming/income-hours/other-income.htm

What you should include as other income
You should include the following types of other income - but only if the total was more than £300:

• income from your savings before tax is taken off
• investments, such as company dividends
• pensions
• income from property
• income from trusts, settlements and estates
• foreign income
• notional income, for example, where income is available to you but you have not taken it

For example, if your total other income from any of these added together was £421, only include £121 (£421 less £300).

...
If you receive an occupational or personal pension, you will need to give the full amount before any tax was taken off. You can find this information on your P60 or other certificates of pension paid.

Metranil_Vavin

Twoflower - I remember you from the ttc thread, we were both due at the same time.

I hope you are doing ok x

SandraScarlett

Sorry I can't offer any advice or info, but just wanted to say I hope it all works out for you - you've had enough sadness in your young life. Good luck to you and your family.

xx