Active discussions

Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Talk
Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Original poster

Tax credits renewal

73 replies

Needanewadventure2021 · 25/04/2023 14:18

Does anyone know when these start being sent? Mine has normally been issued by this point as my payments significantly drop whilst I have to declare pension contributions.
I'm just trying to plan for they drop and get everything in place to submit to try and avoid the long wait to get it rectified

OP posts:
Original poster
Needanewadventure2021 · 09/06/2023 22:10

@ScoobyBooby you only deduct contributions if they are paid after tax and then the tax is reclaimed by your pension provider.

If the contribution is deducted before tax and NI paid then you don't deduct them as your annual earnings will be showing appropriately on your P60.

Hope that makes sense. Most pensions are taken before, but one's like Nest for example aren't.

How are your husbands contributions paid?before or after tax?

OP posts:
Chasingsquirrels · 09/06/2023 22:20

Needanewadventure2021 · 09/06/2023 22:06

@Chasingsquirrels it is much quicker doing it over the phone. Maybe give them a call?

Yeah I'll call next week, after I eventually called last year it was done next day.

I also did my tax return on Tuesday morning, that updated overnight.

I don't understand the tax credit processing, it should be an automated process.

spaceychimp80 · 09/06/2023 22:35

@Chasingsquirrels it was a letter saying they'd received my renewal but the figure they had was higher than the one I'd submitted. So I rang for them to deduct my personal pension contributions. I have to do it every year so no idea why they make you go through the rigmarole. Btw the app still say November for me too so it doesn't get updated as quickly as it should.
Thanks @Needanewadventure2021 I'll check the HMRC app tomorrow to see if it's been amended.

Chasingsquirrels · 09/06/2023 22:38

I've had such a mix over the years, letters like that earlier on, just processed a few years and then the ignoring it last year.

ScoobyBooby · 10/06/2023 08:12

Needanewadventure2021 · 09/06/2023 22:10

@ScoobyBooby you only deduct contributions if they are paid after tax and then the tax is reclaimed by your pension provider.

If the contribution is deducted before tax and NI paid then you don't deduct them as your annual earnings will be showing appropriately on your P60.

Hope that makes sense. Most pensions are taken before, but one's like Nest for example aren't.

How are your husbands contributions paid?before or after tax?

Thank you for replying !
I am actually not sure now . How will I know if it’s been taken before Tax and NI on his wage slip? . I can just see how much he’s paid for each in each box.

spaceychimp80 · 10/06/2023 08:21

Just checked the HMRC app and it has been sorted already! They really must be on a drive to get us all switched over to universal credit.

Original poster
Needanewadventure2021 · 10/06/2023 08:35

This year has been such a relief. Previous years I've waited up to November and December which made this so so hard!!

@ScoobyBooby I cant remember actual wording but it will say the gross figure and then below the amount that is taxable. If it is the full amount, and then shows a pension contribution after I believe you will need to declare them as contributions have been taken after your husband taxable deductions.

But if the taxable pay is different from the gross pay which is the equivalent of your husbands pension contribution then its already been deducted so you won't need to.

OP posts:
ScoobyBooby · 10/06/2023 08:38

Needanewadventure2021 · 10/06/2023 08:35

This year has been such a relief. Previous years I've waited up to November and December which made this so so hard!!

@ScoobyBooby I cant remember actual wording but it will say the gross figure and then below the amount that is taxable. If it is the full amount, and then shows a pension contribution after I believe you will need to declare them as contributions have been taken after your husband taxable deductions.

But if the taxable pay is different from the gross pay which is the equivalent of your husbands pension contribution then its already been deducted so you won't need to.

Thank you so much for explaining I will have a proper look at his wage slip when baby is asleep! There’s no mention of his pension on his p60 which is what I usually use to renew the tax credits

Original poster
Needanewadventure2021 · 10/06/2023 09:08

@ScoobyBooby I'm not sure if pension contributions are mentioned on your P60. However what it will say for example is:

Say your earn £20,000 gross

If PC paid after taxable deductions, then your gross taxable pay will still be £20,000.

This is when you need to declare. If it is.a NEST Pension you definitely have to declare those (thats my provider)

But if your PC are taken before, and say you contribute £2,000 annually then your taxable pay will be based on £18,000. That means they have already been deducted do the figure on your P60 is correct

OP posts:
ScoobyBooby · 10/06/2023 10:58

Needanewadventure2021 · 10/06/2023 09:08

@ScoobyBooby I'm not sure if pension contributions are mentioned on your P60. However what it will say for example is:

Say your earn £20,000 gross

If PC paid after taxable deductions, then your gross taxable pay will still be £20,000.

This is when you need to declare. If it is.a NEST Pension you definitely have to declare those (thats my provider)

But if your PC are taken before, and say you contribute £2,000 annually then your taxable pay will be based on £18,000. That means they have already been deducted do the figure on your P60 is correct

Thank you . It gets deducted from his pay automatically the same as tax and NI

Chasingsquirrels · 10/06/2023 11:21

The question is whether it is deducted before or after tax.
Can he access his pension information? Have a look and see what payments are being credited to the account. If the payments AND separate tax relief are being credited then the contributions are being made out of net pay, and should be grossed up and deducted from income for tax credit purposes.

Original poster
Needanewadventure2021 · 10/06/2023 12:18

@ScoobyBooby but is it before they make taxable deductions or after? The pension contribution will be shown on the payslip but you need to know if they tax the full amount, or the amount minus his contribution

OP posts:
ScoobyBooby · 10/06/2023 13:05

Thank you @Needanewadventure2021 and @Chasingsquirrels very helpful information . He’s going to have a look himself . He’s had this pension for the last 4 years or so too

Original poster
Needanewadventure2021 · 10/06/2023 13:12

I never used to deduct my contributions. This was in 2014 and 2015. I just assumed that as it was paid from my salary it was automatically correct and details sent to HMRC. It wasn't! Depending on how much you contribute it can mean your tax credits have been underpaid.

I'm not sure they can reopen previous years (I didn't try to be honest) but it's definitely worthwhile him checking.

OP posts:
spaceychimp80 · 10/06/2023 15:50

That’s the same as me @Needanewadventure2021 I only started to deduct my pension contributions over the last 4 years.

ScoobyBooby · 12/06/2023 12:56

Needanewadventure2021 · 10/06/2023 13:12

I never used to deduct my contributions. This was in 2014 and 2015. I just assumed that as it was paid from my salary it was automatically correct and details sent to HMRC. It wasn't! Depending on how much you contribute it can mean your tax credits have been underpaid.

I'm not sure they can reopen previous years (I didn't try to be honest) but it's definitely worthwhile him checking.

Yes this is what I am wondering for us too !

I’ve left DH to look into it. Thanks for your help x

Chasingsquirrels · 12/06/2023 23:27

I got a letter today (well actually two identical letters in separate envelopes) asking for proof of my income as it differs from the information they hold.

I didn't get home till late so I'll give them a call tomorrow and hopefully they'll accept that rather than then having to post it in.

spaceychimp80 · 13/06/2023 08:06

They are supposed to accept the pension contribution amount over the phone so fingers crossed @Chasingsquirrels

Original poster
Needanewadventure2021 · 13/06/2023 17:54

@Chasingsquirrels that sounds exactly like the one I received which definitely says pension can be given over the phone. Fingers crossed

OP posts:
Chasingsquirrels · 14/06/2023 18:40

I called them at lunchtime and he took the figures and it is now showing "finalised processing". Not showing tax credits due but hopefully that will update overnight.

herecomesthesummerr · 14/06/2023 18:59

Anyone not received theirs yet? I'm still waiting

spaceychimp80 · 14/06/2023 20:27

@herecomesthesummerr I am sure I read that if I hadn’t received my renewal by June 15th, then I was to ring them. Think it was government gateway that I read that, when I clicked on tax credits.

herecomesthesummerr · 14/06/2023 20:46

@spaceychimp80 thank you. I will give them a call tomorrow, was really hoping it would come before then, I hate having to call them

Starlightstarbright1 · 14/06/2023 21:02

Sorry to jump on the thread… I was previously self employed. Now employed . Where do you put pension deductions . Mine just told me my income for the year and base it on that ?

Original poster
Needanewadventure2021 · 14/06/2023 22:14

There is no separate place to put your pension contributions. You literally have to deduct the amount you paid (if it wasn't taken before tax from your pay)

Most pensions are paid before you are taxed. But some pensions are paid after deductions and tax has to be reclaimed usually by the pension provider. This is the kind of pension you have to declare.

But you just lower your total earnings accordingly when declaring

OP posts: