Universal credit and pension contributions.

Booboop123

I have just migrated over to universal credit and I am employed and self employed.
i voluntarily pay towards my works pension and I don't pay tax there but I'm guessing it's a relief at source pension as the pension provider claims the tax relief.
i then pay into a private pension so that's a relief at source(pay after tax).
so the benefits calculators seem to take both pensions into account but come across some questions on here that say they don't take the private.
anyway my works pension , do I submit or do they take it into account already? 

What about the tax relief?
my private pension ... I was told I add this as expenses?  And do I input it with or without tax relief?
long winded but cont really find anything on if I add the tax relief or not.
thanks 

peteuk

For your employed works pension UC will take your take home pay into account not your wage before deduction. 
If you pay into a private pension from your wage then it depends on how your pay roll people work it.  Theres a few threads already on her that discuss this.   It can be disregarded. 

The further issue you have is Self employment and the need to input your earnings on a monthly basis and if your private pension is paid out of that…. Im not sure…

Someone with more knowledge will be able to help. 

justwhat

What is in your p60(+ SE income) is the figure you use. eg. Taxable income/monthly. If pension is taken off before tax then UC don't want to know. They will want to know any pension that is paid after tax.

I have both types of pension like yourself(+SE), but i am still on TC. I believe its worked out the same but monthly assessment. 

Booboop123

justwhat said:

What is in your p60(+ SE income) is the figure you use. eg. Taxable income/monthly. If pension is taken off before tax then UC don't want to know. They will want to know any pension that is paid after tax.

I have both types of pension like yourself(+SE), but i am still on TC. I believe its worked out the same but monthly assessment. 

Hi, my taxable monthly income  is before my pension is taken off.
eg.  Earned £900
net pay £850 (£50 pension contribution
taxable income uploaded to HMRC £900
so I've no idea what I do with that as I've so far got to my self employed pension adding my earnings and don't know what to put 🙄

justwhat

so both pensions will be relief at source?
if so you just add the 2 pension contributions together(actual amount, not plus tax relief).  Surely you must have had to do this for TC?

Booboop123

justwhat said:

so both pensions will be relief at source?
if so you just add the 2 pension contributions together(actual amount, not plus tax relief).  Surely you must have had to do this for TC?

Hi yes but tax credits you include tax relief, I also didn't have a works pension until a few months ago.  

Thanks for replies it's without the tax relief.

justwhat

i am unsure now if its should be grossed up for UC. After a search in google its unclear.(also UC require net pay reporting, so employer contributions will already be taken off?)



https://www.litrg.org.uk/pensions/paying-pensions/pension-contributions-effect-state-benefits#:~:text=If you get a means,credits is made to you.

kaMelo

UC is calculated on your net pay so they only want to know how the actual figure you pay into a pension. Unlike tax credits where they are grossed up as tax credits are calculated on gross pay.

ElwoodBlues

With relief at source UC should use your pay after pension deductions on your PAYE income. But for personal pension contributions you'll have to declare those manually to UC each month via your journal, and hope that the DM agrees. You might find that you have to provide some sort of evidence (statements?) or request mandatory reconsideration if they don't accept it straight away.

NedS

Booboop123 said:

I have just migrated over to universal credit and I am employed and self employed.
i voluntarily pay towards my works pension and I don't pay tax there but I'm guessing it's a relief at source pension as the pension provider claims the tax relief.
i then pay into a private pension so that's a relief at source(pay after tax).
so the benefits calculators seem to take both pensions into account but come across some questions on here that say they don't take the private.
anyway my works pension , do I submit or do they take it into account already? 

What about the tax relief?
my private pension ... I was told I add this as expenses?  And do I input it with or without tax relief?
long winded but cont really find anything on if I add the tax relief or not.
thanks 

Your works pension should already be taken into account, as UC is based on your net take-home pay

For your self employment, when asked to report your income and expenses each month, there is a box for you to enter any pension deductions - here you enter the net amount - the amount you have actually paid into the pension before any tax relief.

justwhat

NedS said:

Booboop123 said:

I have just migrated over to universal credit and I am employed and self employed.
i voluntarily pay towards my works pension and I don't pay tax there but I'm guessing it's a relief at source pension as the pension provider claims the tax relief.
i then pay into a private pension so that's a relief at source(pay after tax).
so the benefits calculators seem to take both pensions into account but come across some questions on here that say they don't take the private.
anyway my works pension , do I submit or do they take it into account already? 

What about the tax relief?
my private pension ... I was told I add this as expenses?  And do I input it with or without tax relief?
long winded but cont really find anything on if I add the tax relief or not.
thanks 

Your works pension should already be taken into account, as UC is based on your net take-home pay

For your self employment, when asked to report your income and expenses each month, there is a box for you to enter any pension deductions - here you enter the net amount - the amount you have actually paid into the pension before any tax relief.

If pension contributions are entered into the SE section it cannot be offset against PAYE.?

Eg.
SE earnings £1000
PAYE £1000
Pension contribution entered into SE Section £1600. If entered into the SE section , the system NIL's the SE earnings and does not let you carry the 600 pound across as a deduction from PAYE.