Tax credits underpayments over the last 7 years as I didn't include private pension

sovsov1357

Hi,

Can anyone help. I've just discovered that I should have been taking me and my wife's private pension contributions off income for tax credits purposes, and as a result I think we would have been entitled to some money(we've always been sent a letter saying we are entitled to £0 as we are just above the threshold) Has anyone got any advice other than to say "you're an idiot"? Yes I am, I know this. I cannot believe I missed this, especially as I was a voluntary CAB advisor for nearly two years about 7 years ago!

Please give some hope that I might be able to claim some tax credits for years gone by... :-/

densol_2

I dont think you are an idiot at all. In fact its ONLY NOW that the new tax credit online calculator asks that specific question about how much you have paid into a personal pension so its much clearer.

Im sure one of the TC experts will know the answer

Darksparkle

It has been on the claim form and tax credit renewal forms for a number of years now.

I doubt anything can be done about it now as the previous year's will all be finalised but IQ is the best person to confirm.

sovsov1357

Thanks for your replies...I am going to talk to the CAB about this. I do appreciate the comment re: the calculator - this is how I realised my wife is on maternity this year so I knew we should be entitled to some tax credits which is why I did the calculator and the question re: private pension contributions came up. As said, from my perspective, especially online which is what I tend to use, this is the first time I have seen private pension contributions as deductions being mentioned so implicitely - a cynic would say this is a way to stop people working out they can deduct their private pension contributions from their income...

Darksparkle

sam_scott wrote: »

Thanks for your replies...I am going to talk to the CAB about this. I do appreciate the comment re: the calculator - this is how I realised my wife is on maternity this year so I knew we should be entitled to some tax credits which is why I did the calculator and the question re: private pension contributions came up. As said, from my perspective, especially online which is what I tend to use, this is the first time I have seen private pension contributions as deductions being mentioned so implicitely - a cynic would say this is a way to stop people working out they can deduct their private pension contributions from their income...

Just to show it has been on historic paperwork and not just a recent update, here are the renewal help notes from 2012 - http://revenuebenefits.org.uk/pdf/TC603RD.pdf

Page 9 refers to pension contributions and directs you to contact them or use the TC825

https://www.gov.uk/government/publications/tax-credits-income-working-sheet-tc825

densol_2

Darksparkle wrote: »

Just to show it has been on historic paperwork and not just a recent update, here are the renewal help notes from 2012 - http://revenuebenefits.org.uk/pdf/TC603RD.pdf

Page 9 refers to pension contributions and directs you to contact them or use the TC825

https://www.gov.uk/government/publications/tax-credits-income-working-sheet-tc825

Maybe so - but its buried in the notes. I like to think Im pretty good at claiming things and even this came as a surprise to me ( I learned it from a post on here recently ) and of course the calculator.

OP - as you had claims " live " albeit zero awards, ive no idea if they can be recalculated for the past years ( ie 4 years - the same as you can amend tax calculations ) it may be worth a letter and setting out your case and then a mandatory review. All they can say is no - dont ask, dont get!

Darksparkle

densol wrote: »

Maybe so - but its buried in the notes. I like to think Im pretty good at claiming things and even this came as a surprise to me ( I learned it from a post on here recently ) and of course the calculator.

OP - as you had claims " live " albeit zero awards, ive no idea if they can be recalculated for the past years ( ie 4 years - the same as you can amend tax calculations ) it may be worth a letter and setting out your case and then a mandatory review. All they can say is no - dont ask, dont get!

We'll just have to agree to disagree then. I personally don't think it's buried, I just don't think everyone takes the time to read through everything they get through the post. Myself included if I ever get anything from the bank!

Icequeen99

Darksparkle wrote: »

We'll just have to agree to disagree then. I personally don't think it's buried, I just don't think everyone takes the time to read through everything they get through the post. Myself included if I ever get anything from the bank!

I think DS is right on this occasion.

The only way to go back and re-open awards is either via an appeal or using something called official error which allows you to go back 5 years.

You could appeal against your final 15/16 decision, but they may not accept your reasons for a late appeal.

So that leaves official error - this is very hard to show and it has to be a HMRC error and you cannot have materially contributed. Given the notes refer to it and you are told to read the notes, i can't see you could argue an official error case here. You could if the notes didn't contain any mention of pension contributions but that isn't the case here.

IQ

teddysmum

It obviously isn't an error on the part of the administration, as it was the OP who didn't follow instructions.

sovsov1357

Thank you for the replies. As said I think I'm financially astute...I was a CAB advisor for two years, but for some reason this slipped me by, and yes, I must have overlooked the renewal notes...Personally I felt it was buried...I think if they had said explicitly on the form a sentence saying pension contributions/gift aid etc. can be deducted from your income please go to form xxx for more details I probably would have picked this up, but it doesn't say this, it just says go to the form. A bit sickening because all the contributions I made that would make a difference to receiving tax credits were up to tax year ending 2015 so I probably will have my claim rejected. It's taken a few days thinking about/churning over what I could have got but I have come to the conclusion that it's unlikely I will get anything and I'll just have to put it down to experience.

Darksparkle

sam_scott wrote: »

Thank you for the replies. As said I think I'm financially astute...I was a CAB advisor for two years, but for some reason this slipped me by, and yes, I must have overlooked the renewal notes...Personally I felt it was buried...I think if they had said explicitly on the form a sentence saying pension contributions/gift aid etc. can be deducted from your income please go to form xxx for more details I probably would have picked this up, but it doesn't say this, it just says go to the form. A bit sickening because all the contributions I made that would make a difference to receiving tax credits were up to tax year ending 2015 so I probably will have my claim rejected. It's taken a few days thinking about/churning over what I could have got but I have come to the conclusion that it's unlikely I will get anything and I'll just have to put it down to experience.

The actual claim form notes specifically tells you to deduct this. Have done for at least 10 years.

E.g. From the 2006 notes page 36 - If you have made contributions to an HM Revenue & Customs registered pension scheme (other than through your employer) take off the gross amount you paid during the year 6 April 2005 to 5 April 2006.

Sorry but think you'll just need to accept that you missed it. There is no error on their part.