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Tax Credits and Pension Contributions

(3 Posts)
MagsD95 Wed 30-Mar-16 20:44:36


My husband has started a small pension for our LO this year and we have put in a Net contribution of £500 (£600 Gross) for 2015/16.

For calculating Income for Tax Credits, it says that any pension payments not deducted from your salary should be deducted from your annual income.

Does anyone know how does this works if we have both made pension contributions to our daughter's pension and not our own pension?

Do we deduct this amount from whoever made the payments total income for 2015/16?, would it be deducted net or gross? Should it be deducted at all?

I spoke to HMRC today and the lad didn't have a clue, it sounded like he wanted me off the phone as quickly as possible - saying the it was not deductable - he didn't sound convincing at all. I thought about calling again, but I didn't have time to wait another 25 minutes to be answered.

Thanks guys,

Hamiltoes Thu 31-Mar-16 17:39:07

Have to say, I didn't think it was deductable either. I know your personal pension is, but wouldn't everyone and their auntie be swindling money away and claiming it back via tax credits if this was the case?

Where about did you read that you could do this?

lougle Thu 31-Mar-16 18:00:14

Your own pension is deductible because if it's a company scheme it would be taken from your untaxed earnings, so this levels the playing field. I don't think you can claim relief for pension contributions for someone else.

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