Tax Credits and Pension Deductions

[Mezza]

Hiya all,

Have just been filling in my Tax Credits renewal form and noticed a bit about deducting payments made into a pension scheme.

I thought my pension payments were already sorted that way, as RM simply sort it at payroll and it appears on my payslip as Pen Plan C standard.
I also pay into a personal pension through the CWFS, which again is automatically deducted form my pay each week.

Having looked through the internet for about an hour, it appears i should deduct these amounts from my gross pay figure that i enter on my Tax credits renewal form.

Can anyone tell me if this is correct before i go and send this form off, and if it is correct can i then chase them for the years i didn't deduct my pension payments.
And while i'm here can i also deduct my union subs, as it is money paid to a proffessional body as mentioned in the tax credits bumff.

Any help would be appreciated.

[POSTMAN]

Is that child or working tax credits,just had a word with the missus and we get the child one,she does it over the phone and is unaware of the pension thing.
I guess i could be missing out on something.

[Mezza]

I'm the same, on Child Tax Credits.
Don't get the working tax credits as i'm full time, earn too much lol.

[POSTMAN]

Hmmm missus is going to ring them tomm,she's a bit unsure,anybody else know anything?

[POSTMAN]

Ok i just done a dummy run on the tax credit site and i does not mention anything about pensions.

[Mezza]

This is from the Tax credit site, scroll down to 'Step 2, what you need to take off'

http://www.hmrc.gov.uk/taxcredits/start ... income.htm" onclick="window.open(this.href);return false;

[POSTMAN]

Wife had a school trip today so she couldn't ring them,have just showed her the link and she's going to ring them tomm.

[Mezza]

Be interested to know what they say.

Got the following reply on the money saving expert website :

As far as i know you do not declare your own personal pension contributions. Employer contributions do not have any effect on your gross salary so you obviously wouldn't declare employer contributions.

If you earn £20k and pay £2k into a pension fund then you declare £18k. If your employer matches your contribution of £2k, you still declare £18k as if you want to get smart about it, you're actually receiving £22,000 in terms of £20k salary +£2k pension so minus the £4k and you still get to a figure of £18k.

No, you cannot back date it and as far as im aware you still need to declare union membership.


If i understand that correctly, i should deduct my contributions to the RM pension scheme, and also contributions to my own personal CWFS pension scheme, and also my union subs before submitting my gross pay total. Which means i'll have to contact them and do the whole change of circumstances thing. Not at all surprised that it can't be backdated, even though they calculated my original claim wrongly and overpaid me for a whole year and then stopped paying me anything at all for 8 months while they reclaimed it.

Let me know what they say to your wife, i'll be ringing them myself next week as i'm off next week.

[stodgy88]

always ,just give them figure off P60 ,wait with baited breath.

[POSTMAN]

The wife phoned them today,apparently it's only a private pension that they will take into account and not a company one.
Looks like it's a no no,unless any of you get any joy,but i'm doubting it.