UC and Pension Contributions

[Needanewadventure2021]

Hi

I currently receive TC so at some point will be moved over to UC. I am wondering how pension contributions are deducted when there are taken after you are taxed? It is a Nest Pension and contributions come from my net pay and then the tax is reclaimed back into my pension.

Can anyone advise? I thought UC was based on the figure declared to HMRC? But I'm my case this figure won't include my pension contribution.

Thanks for any advice.

UC is fed a figure for net pay via HMRC's Real Time Information feed. My understanding is that it's the figure after tax, NI and Pension but I've not claimed it myself - just advised lot of others. When you're migrated just check the income figure on your calculation for the first Assessment Period against your payslip.

Even though I pay privately into my Nest?I kept it going after moving jobs?

You need to let your assessor know each month and ask them to deduct it and re-calculate.

So a nest pension is valid ? It doesn’t have to be an employer one?

Private pensions are taken into account as income and will reduce your UC. State pension will also reduce your UC. I believe the deduction rates are different eg £1 for £1 deduction for state pension and 55p for £1 for any income.

Even though your not taking your pension only contributing its still taken as income?