do you give gross or net earnings for tax credits?

naiali

Hi

This is probably a really daft question.

I applied for tax credits for the 1st time earlier this year but our earnings are completely different (a lot less) than they were last year. So I phoned and gave them my expected income for this year and it wasn't until I put the phone down that I realised I had given them my salary before tax - is this correct? It was so long ago I filled in the form that I can't remember what I had to include!

Many Thanks

Duncombe

Gross pay.

minimadtrix

Just to add it's gross pay after you've taken any pension you pay.

ie if you have £1000 a month gross pay, but pay £100 into the company pension, you declare £900 a month.

Murgatroyd21

minimadtrix wrote: »

Just to add it's gross pay after you've taken any pension you pay.

ie if you have £1000 a month gross pay, but pay £100 into the company pension, you declare £900 a month.

You don't usually deduct payments to an occupational pension as the employer has usually deducted this, only to a personal pension or retirement annuity. Have a look at the WTC2 leaflet available on hmrc website. If in doubt check with your pay department.

minimadtrix

Murgatroyd21 wrote: »

You don't usually deduct payments to an occupational pension as the employer has usually deducted this, only to a personal pension or retirement annuity. Have a look at the WTC2 leaflet available on hmrc website. If in doubt check with your pay department.

I'm just going on my P60 - I pay an occupational pension which is not taxable. THe gross pay on the P60 has the pension deducted and when I checked with WTC they confirmed this.

Murgatroyd21

minimadtrix wrote: »

I'm just going on my P60 - I pay an occupational pension which is not taxable. THe gross pay on the P60 has the pension deducted and when I checked with WTC they confirmed this.

That was the point I was making as I think it came across that an additional disregard could be made. Apologies if I picked you up wrong.