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Original poster

Tax credits renewal

29 replies

SpideyMom · 24/05/2021 10:51

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 · 24/05/2021 10:58

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.

Original poster
SpideyMom · 24/05/2021 11:13

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 · 25/05/2021 09:22

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?

Original poster
SpideyMom · 25/05/2021 09:37

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 · 25/05/2021 17:23

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 · 25/05/2021 17:49

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.

Original poster
SpideyMom · 25/05/2021 18:12

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 · 25/05/2021 18:51

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 · 25/05/2021 18:54

@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.
Original poster
SpideyMom · 25/05/2021 19:01

That's right. You have to gross it up

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mejon · 25/05/2021 20:35

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 · 25/05/2021 21:00

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.

Original poster
SpideyMom · 25/05/2021 21:30

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 · 25/05/2021 21:53

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

Original poster
SpideyMom · 25/05/2021 22:18

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 · 25/05/2021 23:09

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 · 25/05/2021 23:09

probably properly

Original poster
SpideyMom · 25/05/2021 23:41

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 · 25/05/2021 23:47

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?

Original poster
SpideyMom · 26/05/2021 07:14

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

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Chasingsquirrels · 26/05/2021 17:36

@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 · 26/05/2021 17:40

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 · 03/06/2021 10:30

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.

Original poster
SpideyMom · 09/06/2021 09:30

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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Original poster
SpideyMom · 09/06/2021 09:56

Finally got through and as I thought it had been flagged due to my lower income. I told the advisor what it was for, confirmed my income and she said that's great I will get that processed now for you and it should update overnight.

I cant quite believe renewal has been wrapped up so quickly this year. Fingers crossed tomorrow it does all update and renewal is completed.

Hope everyone else is getting on OK with their renewals

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