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Tax credit and pension contributions
peppapig14
Posts: 266 Forumite
I currently only claim tax credits, I pay £23 per month for my company pension. I now have the option of paying an additional £38 per month and my company will make matched contributions.
I have entered the revised amount of pension contributions ( 61 instead of 23 ) onto the tax credit calculater expecting my estimated tax credit amount to decrease, however it increases- is this correct?
I have entered the revised amount of pension contributions ( 61 instead of 23 ) onto the tax credit calculater expecting my estimated tax credit amount to decrease, however it increases- is this correct?
0
Comments
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If you pay £38 more pension payments then your net income is ls £38 less, so your tax credit increases0
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