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Tax credits, pension contributions and carers allowance

6 replies

Totallycluelessoverhere · 20/05/2021 23:03

I know that if you are employed you deduct pension contributions from your income to calculate the income for tax credit purposes
But
If you receive carers allowance (not in paid employment) and your partner is employed but you pay into a pension in your name can those contributions still be deducted from the income figure?
I can’t find this information anywhere.

OP posts:
LakieLady · 20/05/2021 23:57

I would think not. Tax credits are based on taxable income, and you don't have any!

Totallycluelessoverhere · 21/05/2021 14:14

Carers allowance is a taxable income.

OP posts:
Totallycluelessoverhere · 21/05/2021 14:15

Unlike unemployment benefits carers allowance is a taxable income and has to be declared as income for tax credit purposes. It is taxable in every sense of the word. Gov.uk confirms it is a taxable income.

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Lougle · 21/05/2021 14:16

Deduct from income:

Any pension contributions made to a registered scheme not paid through an employer
Any pension contributions made to a registered scheme paid through an employer out of your net income, for example after tax and national insurance has been paid Include any tax relief due, there is a working sheet you can use to work out your pension contributions. For advice on tax relief due contact your pension provider

Include any tax relief due, there is a working sheet you can use to work out your pension contributions. For advice on tax relief due contact your pension provider."

www.gov.uk/guidance/tax-credits-working-out-income

btwwhichonespink · 21/05/2021 14:21

Interesting question. Technically you should be able to deduct pension from your carer's allowance, but it usually only mentions deducting from earned income.

I don't know, is the honest answer, but very interested in the outcome when you find out.

Totallycluelessoverhere · 21/05/2021 14:26

Thank you Lougle and btwwhichonespink

I couldn’t find out and couldn’t manage to speak to anybody on the phone or the online chat so I sent off a letter with the evidence that I have paid into a pension and will await the outcome.
I haven’t been able to find clear info anywhere.
But I do have a taxable income (carers allowance). It would really annoy me if I cannot deduct them because it would mean only my husbands pension contributions can be deducted and that policy won’t be encouraging any married / living with partner people who are carers to save onto a pension in their own right.
It will just seem another way to shaft the carers who do save the country hundred of millions every year.

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