Tax Credits 2 quirky questions

nilocmac

I am doing the rounds of filling in my renewal and have read I think all the notes on the HMRC site but still I am not sure I have these 2 things clear in my mind.

Income:
Should I include a Foreign social security benefit that I get for one of my children (in the past I have included it). I am conflicted by the wording one part makes me think yes as it is foreign income. But the other part makes me think no as it is not for my benefit?

Expenditure:
My wife and I have both chosen to make pension contributions on top of what our work contribution. These do seem to be taken from our salary before tax. But can I offset them against income?

Any wisdom gratefully received.

Darksparkle

Can you clarify which part of the site you are looking at? All I see is it staying foreign income including social security payments from abroad. What exactly was the purpose of this payment? Was it taxable in that country?

If it's taken off before tax then it's already reflected on your P60.

nilocmac

The foreign social security is because his mother died so not sure if it needs included as income, as it the child's income not mine. Don't know if it was taxable.

Also can't find the part of the HMRC site I was looking at that deals with this.

The penny has finally dropped about the pension contribution and I realise the P60 figure reflects the money already taken off.

Darksparkle

Any amount which would be disregarded for the purposes of income tax by virtue of Section 681 of ITEPA 2003 foreign social security payments - this exempts from UK tax those foreign social security payments which are equivalent to tax-exempt UK social security payments, for example Child Benefit.

https://www.gov.uk/hmrc-internal-manuals/tax-credits-technical-manual/tctm04007

The equivalent UK benefit would be Widows Parent Allowance which is taxable so on that basis I would say it is included for tax credit purposes.

xylophone

I wonder does the ownership of this foreign payment need to be checked?

For example, we speak of Child Benefit but the money is paid to and is owned by the parent.

Widowed Parent Allowance is paid to and owned by the parent.

It could be that the same applies to this payment from abroad.

But is it possible that this foreign payment is paid to and owned by the child ( analogous to a child pension paid by a DB scheme for example) and so not the parent's income at all?

Darksparkle

xylophone wrote: »

I wonder does the ownership of this foreign payment need to be checked?

For example, we speak of Child Benefit but the money is paid to and is owned by the parent.

Widowed Parent Allowance is paid to and owned by the parent.

It could be that the same applies to this payment from abroad.

But is it possible that this foreign payment is paid to and owned by the child ( analogous to a child pension paid by a DB scheme for example) and so not the parent's income at all?

Op said it was a payment they get for the child.