Pension contribution and student loan/grant

markqnorman

Folks
It is fast coming to the end of the tax year, and I am wondering about two things. Because I was unemployed for a short period in this tax year I told student finance that my income for the year could be low enough for my two children to relieve a grant. Which they did after I submitted one of their lovely forms. Then I got a job and my income went up enough for them to loose their grant and for me to contribute toward their maintenance. Now I'm wonder that as I have enough savings if I could now boost my pension pot by some of the amount I earned this tax year and re apply for some of my kids grants. Also I really do need to bolster up my pension so I would be killing two birds with one stone. Any thoughts?
Will student finance except a one off large pension payment to reduce my residual income. Also will they accept what will now be the third adjustment to my income in one year. Fast answers please as the tax year is now very old.
Markq

xylophone

https://www.gov.uk/workplace-pensions/what-you-your-employer-and-the-government-pay


"The effect on your tax credits, income-related benefits, or student loan repayments"

Might be relevant.

markqnorman

Unfortunately that is advice about loan repayments. I'm talking about means tested support to my student children. Effects on reducing our household income when paying in pension lump sums.

xylophone

Unfortunately that is advice about loan repayments. I'm talking about means tested support to my student children. Effects on reducing our household income when paying in pension lump sums.

This fact sheet is actually about pensions.

It advises that a payment to a pension scheme



"......means that your take-home income will be reduced. But this may:

mean you’re entitled to tax credits or increase the amount of tax credits you get (although this may not affect your tax credits until the next tax year)
mean you’re entitled to an income-related benefit or increase the amount of benefit you get
reduce the amount of student loan repayments you need to make"


http://www.entitledto.co.uk/help/taxcredpensioncont.aspx

markqnorman

Thanks again. I do not make student loan payments. I am not a student. My children are. What I want to know is will the student loans people accept me reducing my "Residual Income" by paying a lump sum into my pension, and so then will they adjust my children's loans? I want to know if anyone out there has managed to do this?

xylophone

Your children's grants are assessed on your income?

To that extent they are a means tested benefit assessed on your income?

Making a lump sum payment to your pension reduces your adjusted net income?

If your income is low your children are entitled to the grants? Do the the forms on which you apply for the grants require you to supply details of your income after pension contributions?

https://www.gov.uk/apply-for-student-finance/household-income

bigadaj

xylophone wrote: »

Your children's grants are assessed on your income?

To that extent they are a means tested benefit assessed on your income?

Making a lump sum payment to your pension reduces your adjusted net income?

If your income is low your children are entitled to the grants? Do the the forms on which you apply for the grants require you to supply details of your income after pension contributions?

https://www.gov.uk/apply-for-student-finance/household-income

Well done, xylophone, very patient.

markqnorman

Thanks again. I have just spoken to SFE and they agree that can do what want to do.

xylophone

given that I have already changed my income once this year an

I don't see the problem here? If there is a change in circumstances/income, you advise SFE; there could be such changes several times a year? For example, you might lose a job, take a new job, take on some consultancy work, have a new baby......

And it is not up to SFE to dictate how much you contribute to your pension?

Normally, "allowed" when applied to pension contributions refers to limits on tax relief on contributions to a registered pension scheme?

http://www.hmrc.gov.uk/incometax/relief-pension.htm

markqnorman

Yes you are right, great advise thanks. Hope this helps others.

xylophone

advise

Just comment- I am not qualified to give advice.