Tax Credits Renewals - 2015

hollyboo12

Will do and thankyou �� x

shazspice

Hi i receive working tax credit and I'm just renewing my claim. I pay monthly pension contributions from my salary and was wondering if i include these in the deductions.

TIA

zagfles

too_much_debt wrote: »

Hi Zagfles


Got this reply from the HR woman.


Please see below the answer to your pension query:


· The pension letter you received from Standard Life states an approximate deduction of £130.00, this is based on a 6.5% contribution of earnings


· The calculation was based on your incorrect salary where you were effectively being paid LWA & Ealing Allowance twice, therefore the calculation of £130 was 6.5% of this incorrect salary amount


· Your salary was amended, the contribution amount changed due to a reduction in your salary, it is further reduced – to approx. £113.00 due to the repayments that you are currently making, each month the deductions may vary if there is a fluctuation in your salary – albeit only a small amount normally.


· Your actual deductions based on your current salary calculate to £120.74 – when you calculate your pension contributions at the end of the year the over payments and deducted payments will average your pension contributions to this amount.


· Lastly your enquiry regarding when pension deductions are made – pre / post tax. You opted for a 6.5% contribution plan, the company deduct 5.2% after tax which equates to 6.5% pre-tax.

For the purposes of WFTC your monthly contributions average to £120.74 p/m. I hope this clarifies your situation.


So does this mean that OH is being paid the right amount?


Thanks
TMD

The bit I've highlighted is the relevant bit - it's an admission their previous reply was wrong and the company do take pension contributions after tax.

Note there is no "right" and "wrong" way of them taking pension conts - the company can do it this way, it makes it a complete PITA for anyone claiming tax credits, but they obviously don't care and haven't got a clue about tax credits since they mention WFTC - this was replaced in 2003! WFTC worked differently in that it used net income not gross. So the £120 figure they've quoted you looks wrong as it looks like that's the net not the gross.

The easiest way to handle this is to get a statement off Standard Life for his pension contributions for last tax year. They should send one if they don't ask them for one.

This should show all his contributions plus the 20% tax relief they claim from HMRC. The total amount, ie his conts plus tax relief, should be deducted from his taxable income.

If HMRC query the discrepancy, this pension statement is evidence that pension conts are taken after tax (as it shows SL reclaim the tax from HMRC - this can't happen if pension conts are taken before tax).

Bobbie123

How did you get on today hollyboo12 ??
Again still nothing for me . 8 weeks today since I renewed :mad::mad:

too_much_debt

zagfles wrote: »

The bit I've highlighted is the relevant bit - it's an admission their previous reply was wrong and the company do take pension contributions after tax.

Note there is no "right" and "wrong" way of them taking pension conts - the company can do it this way, it makes it a complete PITA for anyone claiming tax credits, but they obviously don't care and haven't got a clue about tax credits since they mention WFTC - this was replaced in 2003! WFTC worked differently in that it used net income not gross. So the £120 figure they've quoted you looks wrong as it looks like that's the net not the gross.

The easiest way to handle this is to get a statement off Standard Life for his pension contributions for last tax year. They should send one if they don't ask them for one.

This should show all his contributions plus the 20% tax relief they claim from HMRC. The total amount, ie his conts plus tax relief, should be deducted from his taxable income.

If HMRC query the discrepancy, this pension statement is evidence that pension conts are taken after tax (as it shows SL reclaim the tax from HMRC - this can't happen if pension conts are taken before tax).

Thanks for the reply Zagfles.


I am getting so confused. He has only been with this new company pension (and this company) since January 2nd, joined this pension from 2nd February. His previous employer was taking the contributions before tax.


I have no idea who to contact at his company about this. Maybe best to e-mail the actual Payroll department.


I've renewed the claim on the figure on the P60, had a payment of £60.76 today and will get a payment tomorrow (not sure how much it will be).


Thanks again for the reply.

phil001

I had an SMS from HMRC yesterday reminding me to renew my tax credits.

I renewed weeks ago, is this just a standard message that goes to everyone?

luckz666

I renewed on 29th April online and still havent had anything from them.
Its been ten weeks and a day and i have called and they have no reason to tell me why it hasnt been processed.
Cam anyone help?

Bear_time

I am in exactly the same position. It's being escalated tomorrow.

luckz666

I called back and was told its been receives, processed and needs to be finalised!
I have also contacted my MP as its terrible!

Bear_time

I called tax credits last week who told me it's not going to be completed until concentrix update the information. It's already been 11 weeks,

What else can I do?