cakey12
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I'm currently in the midst of applying for student finance for 2019/20, and we are quite confused about entering pension income details....

We chose to recieve the tax free pension lump sum, in addition the remainder at 20% tax.

It was taken at a very financially difficult time to consolidate debts, and a greatly reduced grant would make this year very difficult financially, as our income now remains quite low, to get by for 2019/20.

The pension is not listed on our P60, and on other forums, says they only want income listed as taxable on our P60, so quite confused and worried by all this, and would appreciate any advice.
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PQ
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(Original post by cakey12)
I'm currently in the midst of applying for student finance for 2019/20, and we are quite confused about entering pension income details....

We chose to recieve the tax free pension lump sum, in addition the remainder at 20% tax.

It was taken at a very financially difficult time to consolidate debts, and a greatly reduced grant would make this year very difficult financially, as our income now remains quite low, to get by for 2019/20.

The pension is not listed on our P60, and on other forums, says they only want income listed as taxable on our P60, so quite confused and worried by all this, and would appreciate any advice.
Only taxable income as listed on a P60 is requested.
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cakey12
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ah ok, does this mean my parents should leave pension section of the income part of the application blank too?

thanks for the advice - just was quite worried, as a reduced maintenance grant would have a very real impact on affording the day to day costs of uni... just wanted to make sure, as i wouldnt be able to afford the repercussions of incorrectly filling out the SFE and being asked to pay it back
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Lynsey SFE
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(Original post by cakey12)
ah ok, does this mean my parents should leave pension section of the income part of the application blank too?

thanks for the advice - just was quite worried, as a reduced maintenance grant would have a very real impact on affording the day to day costs of uni... just wanted to make sure, as i wouldnt be able to afford the repercussions of incorrectly filling out the SFE and being asked to pay it back
Hello,

If your parents have received a lump sum from a Private Pension scheme or an Occupational Pension, this will need be included in the application as this has come from a taxable source. These payments are not taxable themselves, however like redundancy payments; they are from a taxable source. We will require evidence of payments received which can be in the form of a pension statement or a P60P.

Thanks, Lynsey.
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cakey12
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(Original post by Lynsey SFE)
Hello,

If your parents have received a lump sum from a Private Pension scheme or an Occupational Pension, this will need be included in the application as this has come from a taxable source. These payments are not taxable themselves, however like redundancy payments; they are from a taxable source. We will require evidence of payments received which can be in the form of a pension statement or a P60P.

Thanks, Lynsey.
Many thanks for your reply.

I just wanted to clarify that the lump sum we took from the occupational pension was the tax free amount, as well as in addition the remainder being taxed at 20%.

Does this mean that these payments (like redundancy payments) will not affect the amount of, for example, maintenance grant available to myself for help with the day costs, but should be listed, or the reverse? (as it was taken to consolidate debt, and our financial circumstances remain the same as for our monthly income).

And whether this amount should be included in the total household income or seperately in the pension section of income? (and would it have any changes to from last year's payments from the grant)?

Also wanted to clarify what is meant by a P60P as opposed to a regular P60.

Thank you very much

(also on this paper tax return guide: http://media.slc.co.uk/sfe/1920/ft/s...ide_1920_o.pdf - its says non lump sum amount only in the pension section - so a bit confused)
Last edited by cakey12; 1 year ago
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SFE Tegan
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Hi,

The lump sum of pension needs to be declared whether your parents paid tax on this or not, as it was from a taxable source.

This may affect your entitlement as it will be included as part of the household income. Your sponsors' should declare this separately in the pension section, not under income gained from employment.

If your household income for the 19/20 tax year is 15% less than what is declared, they can submit a Current Year Income form to have you assessed on the 19/20 income.

The pension lump sum would come under 'other lump sums or income'.

Thanks, Tégan
(Original post by cakey12)
Many thanks for your reply.

I just wanted to clarify that the lump sum we took from the occupational pension was the tax free amount, as well as in addition the remainder being taxed at 20%.

Does this mean that these payments (like redundancy payments) will not affect the amount of, for example, maintenance grant available to myself for help with the day costs, but should be listed, or the reverse? (as it was taken to consolidate debt, and our financial circumstances remain the same as for our monthly income).

And whether this amount should be included in the total household income or seperately in the pension section of income? (and would it have any changes to from last year's payments from the grant)?

Also wanted to clarify what is meant by a P60P as opposed to a regular P60.

Thank you very much

(also on this paper tax return guide: http://media.slc.co.uk/sfe/1920/ft/s...ide_1920_o.pdf - its says non lump sum amount only in the pension section - so a bit confused)
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cakey12
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(Original post by SFE Tegan)
Hi,

The lump sum of pension needs to be declared whether your parents paid tax on this or not, as it was from a taxable source.

This may affect your entitlement as it will be included as part of the household income. Your sponsors' should declare this separately in the pension section, not under income gained from employment.

If your household income for the 19/20 tax year is 15% less than what is declared, they can submit a Current Year Income form to have you assessed on the 19/20 income.

The pension lump sum would come under 'other lump sums or income'.

Thanks, Tégan
Thank you so much for your help, I wasn't aware CYI was an option as our income this year would be far lower.

I also currently receive a bursary during my course, using household income information from SFE, will they take into account the 19/20 amount from CYI as well or use the 17/18 amount.

Also will the CYI be used for subsequent years, or will next year use the 18/19 info etc.

Thanks again for your help
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SFE Tegan
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Hi,

You can apply for the Current Year Income reassessment as long as your income has dropped by 15% and you are not already receiving the maximum funding.

If your parents complete the 19/20 Current Year Income assessment then this information can be used for the 19/20, 20/21 and 21/22 academic years if required. Your parents would need to give permission each year as well as evidence at the end of the 19/20 tax year.

This wouldn't affect your 18/19 application or bursary but would be shared with them for the 19/20 academic year if you requested this.

Thanks, Tégan
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cakey12
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(Original post by SFE Tegan)
Hi,

You can apply for the Current Year Income reassessment as long as your income has dropped by 15% and you are not already receiving the maximum funding.

If your parents complete the 19/20 Current Year Income assessment then this information can be used for the 19/20, 20/21 and 21/22 academic years if required. Your parents would need to give permission each year as well as evidence at the end of the 19/20 tax year.

This wouldn't affect your 18/19 application or bursary but would be shared with them for the 19/20 academic year if you requested this.

Thanks, Tégan
The bursary at my university first requires me to consent to share household information, using which the amount, if any at all, is decided.

If I were to submit CYI for 19/20, would the university use this amount or continue to use the inflated 17/18, which is not reflective of our financial position?

Thank you again for your help
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Erin SFE
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(Original post by cakey12)
The bursary at my university first requires me to consent to share household information, using which the amount, if any at all, is decided.

If I were to submit CYI for 19/20, would the university use this amount or continue to use the inflated 17/18, which is not reflective of our financial position?

Thank you again for your help
Hi there,

If you submit a Current Year Income form this year then the university would be able to see the reduced figures.

Thanks, Erin
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