pension contribution when calculating housing benefit

xlant

Hi,

my earnings will be less than the tax threshold, and i'm planning to make £20 weekly payments into my pension plan. this weekly contribution will be topped up by tax relief of 20% e.i., £5 regardless of the fact that i dont pay tax (its a government initiative to encourage saving in pension schemes up to a certain level).

usually, and for the purposes of calculating housing benefit, 50% of the gross pension contribution (that is, net contribution+tax relief) is discarded when calculating income.

My question is,

in my case, will the disregarded amount when calculating my housing benefit be 50% of £20, or 50% of the gross which is £25 eventhough im not really paying the extra £5 in actual tax, and hence the tax relief in this case is more of encouragement rather than a literal tax relief.

in other words, when they ask me to fill in the gross amount of my pension contribution do I fill in the gross £25 which include the tax relief? eventho its not real tax relief as i dont pay tax on my earnings?

Thank you.

sammyjammy

It'll be based on what you actually pay, the £20.