WTC and pension contributions

Que

My pension payments to an auto enrol workplace pension scheme have been deducted from my income value on past WTC awards. This year the value of these deductions have been refused as these are paid into an 'occupational pension scheme'. Nothing has changed however. Payments are deducted from my net salary and it is this amount that I have been including. Have the rules for WTC been changed please and should I have been including the 'gross' amount on this and previous submissions, I am finding it very difficult to find information on this, and what I do find seems contradictory. Why are payments to one type of pension allowable but not to another type. Any comments would be appreciated thank you.

Dazed_and_confused

There are different types of contributions and all are normally deducted but in different ways.

For some the P60 figure is after pension so you cannot deduct it again on your tax credits claim as that would be counting it twice i.e.

Monthly salary £1000
Less 5% pension £50
Taxable pay £950 - you cannot deduct the £50 again from this, you normally use the £950 for tax credits
This is sometimes known as occupational pension contributions I think.

or you could be paying it like this,

Monthly salary £1000
No pension
Taxable salary £1000

So on tax credits you declare £1000 but can deduct your private pension contributions.

Darksparkle

As above, if already taken into account on your P60 then you don’t deduct it again. If not taken into account on your P60 then make the deduction yourself.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/591789/TC825_04_17.pdf

Que

My employee's contributions are not shown on the P60 - presumably as they are not taken from gross but from net pay. There is an accumulative total on my payslips for month 12, which was forwarded to HMRC as evidence of payments. They would also have this figure on record for them to apply the tax relief to the pension fund.. The form you attach makes reference to being able to deduct gross personal pension contributions but not gross occupational or workplace pension contributions. HMRC this year are refusing the inclusion as they are not being made to a personal pension scheme. I shall appeal but do not know why this has been questioned now when accepted on previous years. I thank you both for your replies but still do not understand. The deductions are not being allowed for anywhere at the moment.

xylophone

Are your pension contributions "net pay" or "relief at source"?



https://www.gov.uk/workplace-pensions/managing-your-pension

https://www.litrg.org.uk/tax-guides/employed/pensions-and-employees/what-automatic-enrolment-employees#toc-i-receive-state-benefits-if-i-join-a-pension-scheme-how-will-these-be-affected-

Que

relief at source - the contributions are made after tax and insurance have been deducted from my salary. Their decision to disregard appears to be made on the fact that it is an occupational pension scheme and not a private pensions scheme.

Darksparkle

Who at HMRC has refused it? An adviser on the helpline? Or have you had a written response from them?

Que

A written letter