Working Tax Credits and Pension Contributions

Michael23

Hoping someone can help

I got a letter recently telling me that my WTC award is alot less this year, I have an over payment of about 1.7k. When I have checked this, They have taken income from my P60 but have not taken account of how much I pay into my pension. The pension contributions I have been making are not on my P60 and they say this is the only info they use. I'm on a at source pension contribution and apparently they don't show on a P60 but a net pay arrangement does. Everything I have read online suggests the amount I have been paying into pension should reduce my income?

I've called today and was just told If it's not on your p60 we don't care. Can anyone help with what I should do

Dazed_and_C0nfused

You are correct about the P60 only reflecting net pay contributions as RAS contributions don't reduce your taxable income for income tax purposes.

But you might want to read the deductions section of the tax credit renewal notes 😊

https://www.gov.uk/government/publications/tax-credits-renewal-pack-notes


Deductions

There may be deductions you can make when working out your employment income for tax credits.
For example:

• the first £100 of any weekly Statutory Maternity, Paternity, Shared Parental, Parental Bereavement and Adoption Pay
• allowable work expenses, fees and subscriptions from your employment income

From your total household income you should deduct any:
• pension contributions you pay outside of your salary or from your net income, including any tax relief due
• donations to charity by Gift Aid from your total household income

Michael23

Dazed_and_C0nfused said:

You are correct about the P60 only reflecting net pay contributions as RAS contributions don't reduce your taxable income for income tax purposes.

But you might want to read the deductions section of the tax credit renewal notes 😊

https://www.gov.uk/government/publications/tax-credits-renewal-pack-notes


Deductions

There may be deductions you can make when working out your employment income for tax credits.
For example:

• the first £100 of any weekly Statutory Maternity, Paternity, Shared Parental, Parental Bereavement and Adoption Pay
• allowable work expenses, fees and subscriptions from your employment income

From your total household income you should deduct any:
• pension contributions you pay outside of your salary or from your net income, including any tax relief due
• donations to charity by Gift Aid from your total household income

Do I report this on my renewal or do I call to report this? 

calcotti

Michael23 said:

I've called today and was just told If it's not on your p60 we don't care.

That's is not correct. You need to report your  finances each year when you renew the Tax Credits,