Child Tax Credit income limits offset by pension contributions 7 September 2022 at 3:15PM in Benefits & tax credits 2 replies 131 views

dchi98

Hello.

Myself and my partner both have fairly low paid jobs ( approx £22000 between us). I am looking to work extra hours but do not want to earn over I believe the limit to receive credits of 27.5k. If I did earn 27.5k this would I believe mean that I would need to pay back all of the tax credit payments made so far.

Am I right in thinking that I if I pay the extra money earned into my private SIPP that this would be deducted from my overall earnings and so I would still be entitled to Tax credits?

Many Thanks.

marcia_

 Depending on your circumstances the limit on earnings before tax credits stop is a huge amount more than £27k

 you would be best off using a benefits calculator to see how the income change would affect you 

Alice_Holt

dchi98 said:

Am I right in thinking that I if I pay the extra money earned into my private SIPP that this would be deducted from my overall earnings and so I would still be entitled to Tax credits?

      Yes, and you would need to account for these contributions when making your annual deductions.

      https://www.gov.uk/guidance/tax-credits-working-out-income