What info do I give Tax Credits?

atlantis187

Just received my P60 and I'm a little confused which info do tax credits want on it it says

This Employment
Pay: £18667.17

Under that it says
Tax deducted: £2227.60

I also pay into a pension £114 a month and it doesn't mention anything about that on here?

zagfles

atlantis187 wrote: »

Just received my P60 and I'm a little confused which info do tax credits want on it it says

This Employment
Pay: £18667.17

Under that it says
Tax deducted: £2227.60

I also pay into a pension £114 a month and it doesn't mention anything about that on here?

You give the pay on the P60.

Re the pension, if it's a works pension then it's almost certainly already deducted from the P60 income - confirm by checking your payslips. If it's a private pension you can deduct it - google TC825.

atlantis187

The information i've provided above is from my P60.
I'm confused as in do I tell them I earnt £18667.17 in last financial year or do I add both the figures above together and tell them I earnt

18667.17 + £2227.60 = £20894.77
Is this the figure I need to give them?


Also the pension is a works pensions

kerryallc71

is your pension payments deducted on net or gross ...

GROSS - pension contributions , your pension payments are paid before tax and NI is deducted , you get tax relief on your wages and you will pay less tax ( p60 will show this ) ..

NET - pension contributions , your pension payments are paid after tax and NI has been deducted , you will pay the normal amount of tax & NI , your pension provider claims the tax relief and adds it to your pension payments ( p60 will not show this) you should receive a yearly pension statement and that will show you your pension payments with your tax relief added , tax relief is 20% on top of your normal pension payments , when you ring tax credits you have to give them your income figure with your gross pension payments deducted , which is your pension contributions plus the tax relief and excluding any contributions your employer made to your pension .

hope that helps ... someone will be along later if ive got it wrong ..

http://www.hmrc.gov.uk/forms/tc825.pdf this should help ...

System

atlantis187 wrote: »

The information i've provided above is from my P60.
I'm confused as in do I tell them I earnt £18667.17 in last financial year or do I add both the figures above together and tell them I earnt

18667.17 + £2227.60 = £20894.77
Is this the figure I need to give them?


Also the pension is a works pensions

The figures on a P60 are always the gross pay and tax deducted at source. You tell them the gross figure of £18667.

You can work out what the gross figure is if you're not sure by dividing the £18667 by 12 = £1555 per month.

You would know by checking your payslips that this isn't your net pay (after tax) and that you actually received in your hand nearer to

(£18667 - £2227) = £16440 divided by 12 = £1370 per month

atlantis187

I think the £1370 figure sounds about right for my net monthly pay

So I should basically tell the my earning for last year were £18667?

Horseunderwater

Yes. Unless you have another income source of course. If no other then that is it. Simples.