Tax relief and Pension deduction on WTC

[noonooc]

Hope I'm in the right place. I know this has overtones of Working Tax Credits but I don't know where else to ask.

Basically my OH has purchased some additional pension on the NHS. OH has purchased the additional sum, by paying for it by a lump sum. OH will be able to set it against the annual income as a loss in the Pension Contributions and Deductions section, see TC825. Effectively increasing the Tax Credits.

Anyway recently OH was told by Wages to apply for a Tax Rebate for his Lump Sum Pension Contribution as there's been no Tax Relief received on the lump sum contribution, so they state eligibility to a Rebate. OH was also advised to ask for this as a single amount and not as a change to the Tax Code.

However what we were wondering is ,if the deduction has been made to the annual income and raised our Tax Credits accordingly, surely we can't also apply for a rebate too?

[Tax Champion]

These are two separate issues - pension contributions reduce your income for WTC, and also for tax, so if no tax relief has been given, ie if the contributions are paid gross, then a claim should be made . If your OH pays higher rate tax, a claim should also be made even if the pension contributions are paid net of basic rate tax, as further higher rate tax releif will be due.