Morning
So I am a single parent in receipt of tax credits. I work full time and use childcare.
My concern is after a pension review I now pay what I feel is a fair bit of my salary a month into my pension. Basically I had been paying into my workplace pension for years, until this year where I finally took notice of my pension statements realising what I was paying was shocking and will actually not help me in the slightest when I retire! After getting advice I made the decision to increase my payments where it will actually help me in the future. I have delcared this but as it is just short of their £2500 threshold they wont take it into account until April.
I am worried because the way my pension is paid is by my full monthly salary being taxed, and then pension taken after. Therefore my workplace declare my full annual salary (tax relief is claimed via the pension provider) and declare this to HMRC and I have to notify Tax credits of my pension payments myself. When renewal comes around in the history of me receiving tax credits, I never get my pack until end of May/June. For me the duration between April and then for Tax Credits to believe I was earning over £2000 more than I have physically had will of course make them collect an overpayment which is money I am actually entitled to.
Has anybody had any experience of this? Tax Credits have said there is no way around this and I cannot send in proof of my payments or payslips in advance. I can only declare my pension in my renewal declaration. Already I am abit panicked as we are not in an position to lose any income each month whether temporary or not. As it is maintenance payments are so erratic this year i've received only 3 payments despite a DOE in place. Any income loss hits us massively, so naturally I am abit anxious come next April already.
TIA x