Pension & benefits confusion

hisfriendmadge

Hello,

I have a SIPP which is made up of frozen pensions from previous employers that I transferred in a number of years ago. At present it is doing ok however I am unable to pay anything into it at the moment.

I am also in my employers pension scheme and I pay 3% voluntary into this. It equates to approx. £50.

I am a single mum with 1 fifteen year old daughter and I'm struggling on a low wage.

My query is as follows......

Next year my daughter would be of an age to apply for EMA (Education Maintenance Allowance). This is awarded based on household income. On my present income I earn £600 over the amount to be eligible.

EMA allows deductions for payments made to a personal pension but not to a works based scheme.

Would it be better for me to stop the extra payments to my works pension and instead pay that money into my SIPP? This would then be deducted from my total income make me eligible for my dd to receive the EMA.

Is this allowed? I'm not even sure.

Thanks for any advice.

sheramber

Are you sure the work place pension is not taken onto account?
A work place pension is deducted form your gross pay it is already taken into account for your net taxable pay figure.

A payment to personal pension is not deducted from your pay and so needs to be deducted separately

xylophone

A work place pension is deducted form your gross pay

Only if a "net pay" scheme?

Some workplace pensions are "relief at source"?

https://support.autoenrolment.co.uk/contribution-and-payroll/info/tax-relief-net-pay-relief-at-source