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Private pension - net or gross?
Wondering if anyone can help. I have a client who is on UC. He receives a private pension of £85.60 (net). He is currently paying tax on this (although that’s another matter to be sorted out!). The gross amount is £106.80. DWP are deducting £115.70 as an occupational pension and therefore are using the gross figure.
Is this correct? Should DWP be taking into account the gross or net figure for private pensions?
Thanks
The gross amount is £106.80 and DWP is deducting £115.70? How does that work?
I understand the gross figure is deducted, but somebody will set me right if I’m mistaken, I’m sure.
Thanks Edmund.
It looks as though the £106.80 is paid 4 weekly, so £115.70 is the monthly figure for the assessment period.
The gross amount is £106.80 and DWP is deducting £115.70? How does that work?
I understand the gross figure is deducted, but somebody will set me right if I’m mistaken, I’m sure.
Sorry; for MTBs (not Tax Credits) all income is used net, after tax has been deducted. It’s why we have to do complex tax sums when looking at potential income from pensions etc.
I’m not sure - reg 66 of the UC regs deals with income that is to be taken into account - I think it would come under para 1(m) which says any other income that is taxable - but it doesn’t as far as I can see specify whether it is net or gross. It would seem hard to take the gross income into account when you haven’t got it all - it doesn’t for earnings.
Does anyone else have any views?
Edit - see Gareth has replied while I was. So Gareth where it says income in reg 66 it means net income?
I think for UC it’s going to be “retirement pension income’ (UC Reg 67 , s16(1)(f) SPCA 2002) )
So income tax comes off under SPC Reg 17(10) ..?
Yea I looked at that too but wasn’t sure it was retirement pension income if he wasn’t retirement age - but maybe I assumed it was an occupational pension before retirement eg on medical grounds.
Hi all
Thanks for your help, the pension appears to be an occupational pension, he has not been medically retired to the best of my knowledge as he has worked since.