Tax credits renewal

(30 Posts)
SpideyMom Mon 24-May-21 10:51:17

Hiya

Just wondering how people's renewals are going?

I've had to declare different income due to pension contributions so now am waiting, which is driving me mad as my award has been reduced in the meantime.

Does anyone know the quickest way to get it sorted? I usually wait until August/September but could really do without that as I've worked out I've actually been underpaid and not overpaid like they are currently saying. I have the same issue every year.

What stages are others at?

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Lougle Mon 24-May-21 10:58:20

I renewed over the online chat last week. Took a while to get to an advisor (I needed to speak to someone because our income wasn't recorded as I'd previously reported) but then quite quick to do.

In a previous year I tried to claim for allowable expenses and a man phoned me to say 'Look, it would be much easier if you didn't and you'll only lose £30, so can I just put it through as it is?' hmm I agreed for an easy life.

SpideyMom Mon 24-May-21 11:13:23

Oh I will try that. My income difference is over £2500.
Obviously I mean tax credits. Hopefully admin can amend?

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Candlestickchic Tue 25-May-21 09:22:10

Have you had your renewal packs yet? I had a letter confirming details for 20/21 but no renewal pack. Assume they are still sending them out?

SpideyMom Tue 25-May-21 09:37:10

Yes I had mine at the end of April which is the earliest it's ever come!
I'm stil waiting for it to update so will leave it until the end of next week and I will give them a call.
Its just so annoying as it's it's same amount of pension every year that they need to deduct. I've been paying into it for the last 5 years now but every year I have the same. Most years my renewal never gets finalised until September so I've had to spend 6 months with significantly reduced payments

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Candlestickchic Tue 25-May-21 17:23:33

That’s annoying @SpideyMom. I’ve had similar as I sometimes put a bit in a SIPP which obviously doesn’t show on the P60 which I guess is what they go on...
Last year my renewal was earlier. Tempted to update on the website but would rather get the pack to see it all in black and white and make sure I get it right!

Chasingsquirrels Tue 25-May-21 17:49:05

Renewal pack through last week, but haven't had p11d from work (group plan health insurance, it is only about £500 but I need the actual figure) so can't complete the renewal yet.
Tax credits have been stopped entirely as usual.

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SpideyMom Tue 25-May-21 18:12:26

I know what you mean @Candlestickchic even though you are certain the pack won't show any different other than the information you need to declare, you can never be too sure with Tax Credits so it's always worth while just waiting.

You have the same issue too dont you @Chasingsquirrels and it always takes some time for your P11D to come through. I feel your pain but to have them stopped completely must be horrible. Mine are significantly reduced once again but have a small amount still.

It's just the wait now that I struggle with. It says it will be done by the end of November which I know is the worst case scenario but it usually takes a good 6 months, and before I know it renewal is here again. I've found in the past when I have chased I am bluntly told to wait and it will be done by November. But it really is a struggle. One year they told me I hadn't renewed and my payments had been stopped because of it. I called straight away fuming as I'd renewed 4 or 5 months before them being stopped, however that 10 minute phone call pushed renewal through so I wish I could call it through every year!

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mejon Tue 25-May-21 18:51:16

Can I just check what others have done. Like you @SpideyMom, I deduct personal pension contributions for DH and I from our income each year. The renewal has just arrived today with a simplified form to return and a booklet.

When it gets to allowable deductions, in the section about Gift Aid and pension contributions, it says to multiply the total paid x 100 then divide by 80 - which gives a higher amount than the 'actual' sum we contribute. Is this correct? I can't recall ever seeing this before and have only ever given them the actual sums we paid into our pensions to deduct from our income. Thanks.

Lougle Tue 25-May-21 18:54:14

mejon

Can I just check what others have done. Like you *@SpideyMom*, I deduct personal pension contributions for DH and I from our income each year. The renewal has just arrived today with a simplified form to return and a booklet.

When it gets to allowable deductions, in the section about Gift Aid and pension contributions, it says to multiply the total paid x 100 then divide by 80 - which gives a higher amount than the 'actual' sum we contribute. Is this correct? I can't recall ever seeing this before and have only ever given them the actual sums we paid into our pensions to deduct from our income. Thanks.

It's because they are tax deductible. If you paid £0.80 into your pension, then you used £1 of taxable salary to make that payment, because £0.20 was taken from you in tax before you could make the payment.

SpideyMom Tue 25-May-21 19:01:22

That's right. You have to gross it up

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mejon Tue 25-May-21 20:35:29

Well I'll be blowed - thank you. Is this a new thing or has it always been the case? I don't ever remember seeing the information before. It's a few hundred pounds extra on top for each of us so not a massive amount but a welcome amount.

Chasingsquirrels Tue 25-May-21 21:00:38

Always been the case.

But do make sure that pension contributions you are deducting are made from taxed income, not already deducted from your earnings to arrive at your P60 figure.

SpideyMom Tue 25-May-21 21:30:27

Yeh its always been a thing. Mine is just under £2500 but it never makes a difference on my payments because it falls under their £2500 disregard which is so annoying, as when I work it out it should mean I am due a few hundred back. But I never am because of the disregard. Just this year with being furloughed its alot less than any other years salary

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mejon Tue 25-May-21 21:53:21

Thank you. This is for personal pensions we both have, separate (and in addition) to the pensions we have through our workplaces.

SpideyMom Tue 25-May-21 22:18:05

Then make sure you gross up what you pay. As you will be paying them from your net salary presumably. My pension is a workplace but know as a relief at source. Basically I work for a small company so it's cheaper for them to do it this way and the provider claim back the tax

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Chasingsquirrels Tue 25-May-21 23:09:33

That doesn't make sense, it certainly isn't cheaper for them as they'll be paying the employers NI (and you'll be paying employees) whereas if it was probably salary sacrificed you both save the relevant amounts. Other than that there is no difference, scheme provider reclaims tax on employee contributions(net) and doesn't on employer contributions (gross).

Chasingsquirrels Tue 25-May-21 23:09:54

probably properly

SpideyMom Tue 25-May-21 23:41:15

It was tax credits that told me my type of pension was the cheapest way for smaller employers to be able to offer staff a workplace pension

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purpleme12 Tue 25-May-21 23:47:14

Hello
Can I ask
I got my renewal through but after that I rang them anyway as I needed to make some changes from immediate effect so done that and got amended letter for that
But no new renewal pack? Can anyone confirm I'll get new renewal pack?

SpideyMom Wed 26-May-21 07:14:57

You're pack should still arrive. I had to make changes too and still had to renew

OP’s posts: |
Chasingsquirrels Wed 26-May-21 17:36:45

SpideyMom

It was tax credits that told me my type of pension was the cheapest way for smaller employers to be able to offer staff a workplace pension

Haha, well we all know what a load of tosh tax credits are! 🤣

ConfusedAdultFemale Wed 26-May-21 17:40:20

I renewed online, so far had an email and reference number given but that’s it. Nothing you can do to hurry it up unfortunately

earlydoors42 Thu 03-Jun-21 10:30:53

I am waiting for my husband's p11d - I have all the other info - mine is complicated :-( Actually I think I will submit my self assessment first too. I hate tax credits, they always mess up.

SpideyMom Wed 09-Jun-21 09:30:07

So ive received a text today from HMRC saying they need to discuss my renewal with me. Been sat for the last hour on chat waiting for an advisor. I can call until after work later

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