tax relief when do i get it

mrs_angry

hi there was hoping someone could help me, my husband pays £248.99 into a personal pension not through his employer!

I can deduct his gross monthly contributions from his end of year p60 to bring down what he earned.

I am applying to tax credits and they want his gross pension contributions before tax relief was given! please help i dont know what calculation to do

was told to 248.99*100/78 but i dont know if that calculation is before tax relief given

sorry to ask a stupid question but the difference in grossing up his contributions is quite large

regards and thanks in advance

CLAPTON

If your OH pays pension contributions out of taxed income, then yes, the correct way of working out gross pension payments is 248.99 x 100/78 for tax year 2007-8

mrs_angry

thanks for that, is that before tax relief given? what ever that means!

CLAPTON

yes, in this case, gross means before tax relief is given

so he pays in 248.99 to the pension company and they reclaim the tax and invest 319.22 in his pension fund. and so the 'gross' amount invested is £319.
I have no idea however, of how tax credits work but if they want a pension figure it will be the gross one.

chesky369

It might be an idea to ask for a statement from the pension company, just to check that your sums match theirs.

mrs_angry

thank you to you all i will put the figure of £319 as his gross monthly figure.

kind regards