Household Residual Income - Student Loans

pedrouk

Hi


I am seeing conflicting information on residual household income when applying for the Student Loans maintenance grant. MSE defines residual income as follows "This is your combined annual family income, before tax and national insurance have been deducted. But you can deduct any pension contributions made."

Can you really deduct "any" pension contributions? Or are employee pension contributions deducted on a payslip NOT to be deducted? Is it only separate additional contributions that you make into a pension that can be deducted when calculating residual income?

Starrystarrynight1

Occupational pension contributions are taken from salary before taxation so, if the sponsor is in an occupational scheme, they will just need to use the 'taxable income' figure from their P60. However, private pension contributions are paid after tax has already been deducted, so these can be subtracted from the 'taxable income' listed on the P60, thereby reducing residual income.
Hope that helps.