Pension Contribution help

starfish10

It looks like I am going to have a problem, they have already ignored the fact that I have sent letter with payslips and pension statement. I am probably better off paying it into a private pension scheme instead of the works one. Thanks for all your help on this matter though

starfish10

Fast forward a few months I have just received letter from tax credit office saying my income does not match what I have told them. This time they must have the information through RTI that I do pay pension contributions as my income figure on the letter is lower than my figure on P60. This amount is my taxable pay minus my net contributions to pension.
when telling them my income I have told them taxable pay minus gross contributions (my payment plus tax relief which is added on by the pension scheme provider when my payment goes in.
Am I right?

zagfles

Yes you are correct, it's gross contributions.

But which year are you talking about? Did you get your 2014/15 award finalised on the correct figures? Are they now opening an examination of your 2014/15 award or are they talking about your current year 2015/16 award?

Although, if your job paying around £8k is your only income and you pay £6k net into the pension, it shouldn't make any difference to the award since tax credits taper only starts at £6420, so you're well below that either way.

starfish10

we are still talking about 2014/2015 as my husband is self employed and so they have estimated figures for his income at the moment. I have not reported his actual figures yet. Just this week though tax credits have just paid a lump sum payment into bank which works out exactly to the figures on this letter. But as I say they only have my net payments. How can this be?

zagfles

They've screwed up by the looks of it. I don't think pensions contributions are part of RTI yet so it has to be adjusted manually - what evidence did you send, was it the pension statement or payslips? The pension statement would presumably show the tax relief.

As per this link IQ posted above, you deduct:

the amount of any contribution made by the claimant, or in the case of a joint claim, by either or both of the claimants to a registered pension scheme together with the amount of any tax relief due on those contributions

They may be a bit confused since you're getting tax relief despite not paying tax! But that doesn't matter, the legislation says to deduct the grossed up payments ie your contributions plus the tax relief.

starfish10

Hi Zagfles. I told them over the phone a while back so I haven't sent evidence for 2014/15. I did for previous year and they ignored it and did not reply so I rang them and it was then that the advisor argued with me over it and I ended up letting them finalise that award and then I did not do anything about it. So they must have some information from somewhere as the figure that is taken from my taxable income is exactly what I have paid to pension and then as I say the pension provider adds 20% tax relief to it (It is a relief at source RAS)

zagfles

I'm not sure what you do in your situation where the award isn't finalised because you've given estimated figure. If it was finalised you should ask for a Mandatory Reconsideration and supply the evidence ie your pension statement.

IQ or BB will probably know...

starfish10

on the letter it says
What you need to do
if I disagree with information and figures to contact them and send evidence


then we will send you a final award notice check it and if you disagree then phone us


Sounds like they have already made up their minds but where have they got info from it must be RTI and why can they not understand it.
I guess I am just anxious about ringing them up as the guy was just so difficult with me last time and made me feel terrible. I know I am correct and was then

Icequeen99

Do as they suggest and send them evidence. If they refuse to accept it and issue the final award notice using RTI data then just submit a mandatory reconsideration.

IQ

starfish10

I did not get chance to contact them as they have sent a final tax credit decision based on all incorrect information, what do I do now ring them or just do a mandatory reconsideration?