Nest pension

[Whatshouldido99]

I have a Nest pension with my employer.
A few questions I hope someone can answer or point me in the right direction:

1. tax credit renewal, do I deduct my pension contract from my taxable pay figure on my p60?
2. if i increase my pension contributions, will this reduce the taxable pay figure on my p60?

TIA 😊

Bump

I have a Nest Pension. As my contributions never show on my P60 I have to deduct what I've paid, gross them up and then declare that figure to TCs.

I hate renewals as they take so long because of this.

As contributions with nest are taken after deductions, the tax you have paid gets reclaimed and invested into your pension fund

@Needanewadventure2021 thanks for your reply.
So I need to add up my pension contributions for the last tax year, add 20% and take that off the figure on my P60 when doing my renewal?

It depends how your employer has set the scheme up

@PickledPurplePickle How would I find that out? Assume I can ask nest?

NEST would be relief at source so doesn't reduce your taxable pay because they don't offer net pay pensions. You would also be able to tell on your payslip if your gross taxable pay and gross pay are the same (assuming no expenses payments) - if they are this means tax is added to the pension scheme. In this case you calculate the gross but you don't add 20% to your deduction as that isn't enough - you have to divide your deduction by 8 and multiply by 10 to get the gross figure then deduct that from your taxable pay to get the figure for tax credits. Just to note you may need to tell them because the last time i had a claim (which was a few years ago now) they just took the P60 figure from the electronic submission they receive)

@user1469123980 thank you so much for your reply.
So with my NEST pension I don’t deduct anything from my taxable pay figure on my payslip for my tax credit renewal?
if I pay extra into a private pension - would I them take the contributions off my taxable pay?

Hi no you gross up as I said then deduct that figure from your gross taxable pay for tax credits

As above. Nest contributions are taken AFTER you are taxed. Therefore you have to gross them up.

(Amount) x 100 / 80 I believe it is

@user1469123980 sorry I misunderstood you and am really confused now!
Do I add up all my nest contributions for the year, divide by 8 (where does 8 come from?) then multiply by 10. Then take this figure off my taxable pay on my p60?
so therefore if I pay more into my nest pension, my taxable pay will reduce further?

You will have paid tax on your contributions so upping your pension contributions will not reduce your taxable income as it will still be taxed on a gross basis via nest.

This is why you need to gross up what you have paid and declare that to TC.

So for example you have paid 1000 over the year in contributions. You need to 1000 x 100 / 80 = 1250. You will then deduct 1250 from the gross shown on your P60 and declare that to TC

@user1469123980 thank you . Sorry I wasn’t clear- I meant it will reduce my taxable income for tax credits. Assume I would also deduct pension contributions from my P60 taxable income figure when my child applies for a student loan?

Yes you can deduct for both but trust me student finance are even worse to deal with on this than tax credits!!