The Student Room Group

Student Finance Form for Parents doesn't make sense for pensions

Dear Student Loan people

I'm trying to support my child's application, but it doesn't make sense, or doesn't seem fair in three respect. The main one is pensions. It says: "We need to know if you made payments to any pension other than your workplace or occupational pension scheme.", but seems to assume all workplace pensions are 'Net pay’ pensions, i.e. the pension contribution is taken off your income before the tax is taken. But actually some workplace pensions are 'Relief at Source' pensions, where the pension is taken AFTER the tax is taken. See https://www.gov.uk/workplace-pensions/managing-your-pension

Logically people with 'Relief at Source' pensions should add their pension contributions in the same way as private pensions. But that's not what the form says.

Please clarify if I should add my 'Relief at Source' pension contributions as a private pensions, even though they were a workplace pension.

Also two other things seem unfair compared to other goverment things related to income / tax:
- You can't include a loss in self employment as a negative sum, you have to put zero.
- You can't take gift aid off your income, though you do for income tax, tax credits and child benefit.

In my case these three factors all work against me, increasing my income as a parent for my child's student loan application by almost 20% compared to the income I actually paid tax on for 2021-22.

I looked at https://www.thestudentroom.co.uk/showthread.php?t=6915572 but the person answering there didn't seem to have heard of 'Relief at Source' pensions, so dismissed what Cobson was saying. It won't allow me to comment there, perhaps because it's old.
Original post by StellaHC
Dear Student Loan people

I'm trying to support my child's application, but it doesn't make sense, or doesn't seem fair in three respect. The main one is pensions. It says: "We need to know if you made payments to any pension other than your workplace or occupational pension scheme.", but seems to assume all workplace pensions are 'Net pay’ pensions, i.e. the pension contribution is taken off your income before the tax is taken. But actually some workplace pensions are 'Relief at Source' pensions, where the pension is taken AFTER the tax is taken. See https://www.gov.uk/workplace-pensions/managing-your-pension

Logically people with 'Relief at Source' pensions should add their pension contributions in the same way as private pensions. But that's not what the form says.

Please clarify if I should add my 'Relief at Source' pension contributions as a private pensions, even though they were a workplace pension.

Also two other things seem unfair compared to other goverment things related to income / tax:
- You can't include a loss in self employment as a negative sum, you have to put zero.
- You can't take gift aid off your income, though you do for income tax, tax credits and child benefit.

In my case these three factors all work against me, increasing my income as a parent for my child's student loan application by almost 20% compared to the income I actually paid tax on for 2021-22.

I looked at https://www.thestudentroom.co.uk/showthread.php?t=6915572 but the person answering there didn't seem to have heard of 'Relief at Source' pensions, so dismissed what Cobson was saying. It won't allow me to comment there, perhaps because it's old.

Hi there,

You can declare it as a private pension so we can take this into account, but we will need evidence of this.We would need like a statement from your private pension company confirming what you paid. Anything you send include a cover letter detailing why you're sending it and you can upload this online in your account or the students under the evdience upload option.

Thanks,
Claire

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