Pension contributions UC headache

phill2-0-0-3

Hi 

I've just moved to UC from tax credits . 

On tax credits I normally contributed the same amount ever month . 
Which was deducted from my income for my tax credits award . 

I've been reassured this is the same for UC . 
I have phoned and been informed this is not the case . 

I've spoken with the manager and another member of staff via the journal to be informed the same . 
That there not deducted. 
I was warned of this .
I have sent them proof all pension contributions are to be deducted for income purposes via the government website . 

Still I'm not getting anywhere . 

I have requested via work to reduce the amount via my pay instead monthly . 
But this will be a major headache .
And when I have lower pay I don't pay as much into my pension .
So this will just be one of sum monthly . 

Also If I contribute £100 into my pension I get £125 with tax relief . 

But if it goes through work as I don't pay tax I don't think they will add the tax relief . 

Many thanks 

ader42

“Also If I contribute £100 into my pension I get £125 with tax relief . 

But if it goes through work as I don't pay tax I don't think they will add the tax relief . “


The tax relief will be added by the pension company.

xxxxxxxx

phill2-0-0-3 said:

I have sent them proof all pension contributions are to be deducted for income purposes via the government website . 

Can you link to that proof?

Dazed_and_C0nfused

ader42 said:

“Also If I contribute £100 into my pension I get £125 with tax relief . 

But if it goes through work as I don't pay tax I don't think they will add the tax relief . “

The tax relief will be added by the pension company.

Not if it is a net pay contribution, there is no pension tax relief with that method of contribution.

A net pay contribution reduces income for tax purposes instead.  For example salary £20,000 with net pay contributions of 10% would mean taxable pay was only £18,000 i.e. you avoid paying tax on the £2,000 net pay contributions.  No tax relief would be added to the pension.

@phill2-0-0-3 can you confirm what method would be used if you contribute via your employer?

Dazed_and_C0nfused

xxxxxxxx said:

phill2-0-0-3 said:

I have sent them proof all pension contributions are to be deducted for income purposes via the government website . 

Can you link to that proof?

It's what the UC legislation states at section 55 (5) (a),

https://www.legislation.gov.uk/uksi/2013/376/regulation/55

xxxxxxxx

Have you offered them proof of pension contributions and given it to them? 

Sounds like you need to tell your work coach/manager they are not a decision maker and this needs to be looked at by a decision maker. 

You said proof on government website, can you link to that proof?

this states relievable PC does not include those paid by an employer
Relievable pension contribution Definition | Legal Glossary | LexisNexis

Earnings taken into account for employed people are the gross earnings (from HMRC) minus the income tax and NIC.  Pension contributions within a employer's payslip are not disregarded. 

Pension contributions made outside of the employer's payslip are deductible from the gross earnings figure received from HMRC.

justwhat

xxxxxxxx said:

Earnings taken into account for employed people are the gross earnings (from HMRC) minus the income tax and NIC.  Pension contributions within a employer's payslip are not disregarded. 

Pension contributions made outside of the employer's payslip are deductible from the gross earnings figure received from HMRC.

Disregarded  pension contributions direct form payslip  depends if its gross or net. If pension contributions are taken after tax it should be declared to UC. Pension contributions before tax from payslip do not need declared as its reflected in take home pay already.