debeast
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Post by debeast on Feb 3, 2014 22:03:37 GMT
I'm filling in a loverly HMRC form and i have a section on other taxable income. I'm in FT work. It asks for ' Monthly pay, before tax'My question is does this mean before or after pension contributions? There is no other explanation given  What do people think? Thank you /beastie |
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Post by bracknellboy on Feb 3, 2014 23:00:31 GMT
Odd. What kind of form is that ? And they haven't provided useful notes/guidance sheets on how to complete it ? If it was a tax return and you have pension contributions paid through salary sacrifice then it would be taxable pay i.e. after deduction of pension contributions. But if it was a tax return it would not be asking for monthly.
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debeast
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Post by debeast on Feb 4, 2014 8:53:51 GMT
It's a 'tax implications for surviving spouse form' sadly my wife passed away before christmas. There was no guidance included. I'll go and have a search on HMRC website. I thought it might just me being thick. Form is here Thanks /beastie EDIT: Found the form but no guidence |
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pikestaff
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Post by pikestaff on Feb 4, 2014 16:19:26 GMT
I can't find any guidance either.
On the basis that HMRC is interested in your taxable income, I would put in the amount net of pension contributions (provided they are deducted by your employer). This is consistent with what goes on the tax return.
Edit: At the end of the day it does not matter too much, if you will be submitting a tax return. It will all get levelled up then. The form just gives them a chance to adjust your tax code and grab any tax due now rather than at the end of the year.
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pikestaff
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Post by pikestaff on Feb 4, 2014 16:27:51 GMT
If it was a tax return and you have pension contributions paid through salary sacrifice then it would be taxable pay i.e. after deduction of pension contributions. Not quite right I'm afraid. You are getting employee's contributions and salary sacrifice mixed up. Employee's contributions are deducted by the employer from the employee's taxable pay. When filling in your tax return you have to deduct them, although your P60 should do this for you. Some employers operate a salary sacrifice scheme whereby, instead of making employee's contributions, you agree to accept a lower salary in exchange for the employer making additional employer contributions. In this case, no adjustment is needed because your salary already excludes the pension contributions. Because salary sacrifice reduces gross pay, it saves on national insurance contributions for both employer and employee.
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Post by bracknellboy on Feb 4, 2014 17:10:02 GMT
pikestaff: I think we are saying the same thing. I was referring to the point that what you declare is the income after deduction has been made: which in turn will be what is declared anyway on your P60. I wasn't implying that they should be deducted twice. I am in a salary sacrifice scheme, and what is shown on my payslip is numbers for both a pre salary sacrifice and a post salary sacrifice position. but the bottom line is that my taxable pay does not include my contributions; and nor would my P60.
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debeast
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Post by debeast on Feb 4, 2014 20:14:00 GMT
Thank you very much Thats kind of what i'd hoped. /beastie |
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What do people think?
