Pensions from Gross or Net?

nad1611

Thankyou everyone,you'll have to bear with me, I've asked this question in different ways on here and have asked the advice of the Wages Dept and NHS Pension Scheme helpline, but I seem to get different answers whoever I ask and then get confused about the answers.
So, my husband wants to set up an additional nhs Pension, is there any way looking at his P60 or wage slips if we can tell that his pension contributions are taken from his net or gross salary. We have never had to reclaim anythig so we presumed it was from gross.
Also if taken from his gross, then do we presume that the "Total for the Year" on his P60 has already had his pension contributions deducted.
If it is from gross, are we right to also presume then, if he started paying more contributions from his gross salary between now and April 2012, his Total for the Year would be lower and we'd be declaring that to e.g WTC as our Taxable Income?

Hope that makes sense. One bit on his payslip shows his taxable pay and I see it's exactly an amount minus what his pension is, so I guess that would suggest, it is taken from his gross?
Also how much of his salary can he contribute?

System

I don't know how much he is allowed to contribute but the taxable pay is the total pay minus his pension contributions and it is the taxable pay which appears on the P60.
You declare the P60 figure to the Tax credit office

nad1611

Thanks, this is what I thought originally and believe it or not people who should know e.g WTC have been telling me to declare his gross income and not the figure on his P60, if you're not 100% sure about these things you then start questioning yourself, hopefully someone will come along and tell me how much he can contribute.

jem16

nad1611 wrote: »

is there any way looking at his P60 or wage slips if we can tell that his pension contributions are taken from his net or gross salary.

NHS pension contributions are taken from gross salary.

Hope that makes sense. One bit on his payslip shows his taxable pay and I see it's exactly an amount minus what his pension is, so I guess that would suggest, it is taken from his gross?

You are correct.

Also how much of his salary can he contribute?

As much as he likes.

nad1611

As always, straightforward advice thanks to you both. Not even the NHS Wages Dept seemed to agree that pensions were taken out beofre tax!! Well maybe I got confused 'cos he was trying to blind me with science when all I wanted was a simple answer. Thanks

ceeforcat

nad1611 wrote: »

As always, straightforward advice thanks to you both. Not even the NHS Wages Dept seemed to agree that pensions were taken out beofre tax!! Well maybe I got confused 'cos he was trying to blind me with science when all I wanted was a simple answer. Thanks

What a surprise! NHS pension scheme is a complete nightmare (speaking as someone who works with them day and daily)- just wait until you get the calculation of your pension - check your final salary carefully.

nad1611

ceeforcat wrote: »

What a surprise! NHS pension scheme is a complete nightmare (speaking as someone who works with them day and daily)- just wait until you get the calculation of your pension - check your final salary carefully.

Would you care to enlighten me? What problems have you experienced in reference to the Final Salary calculation?

ceeforcat

nad1611 wrote: »

Would you care to enlighten me? What problems have you experienced in reference to the Final Salary calculation?

Many, but the most frequent error (three times in last year alone) is when calculating for part-time people, my wife included. They seem to be unaware that it is the full time equivalent of the part-time salary which is to be taken when calculating final salary. This alone would have cost my wife many thousands over her enforced retirement due to ill health.

I shudder to think how many are on the wrong pensions for what, to me, is a fundamental error.

nad1611

I must admit to having a very hard time believing, that someone could in effect pay in all of their salary and their claim for WTC would increase as a result. It just seems to be good to be true and you know what they say about that!!!

I would be concerned it would fall under the Rule about Notional Income and Income Deprivation. Is anyone actually doing this, contributing a large part of their income to pension and having an increase in benefits. Doesn't seem right. Even if our intention is to provide for me as I am unable to work, once we are both retired.