Am i paying too much tax. Pension cont.

little-spender

Now I know I am rubbish at these things so may be totally out, hopefully not .Looking at various sites it says out take home pay should be more and I am wondering if maybe our Pension relief has not been added.

Hopefully one of you more knowledgeable MSE's can help.

Thanks found the part, It s a Personal Pension scheme, thus pay tax on all income

thanks

Dazed_and_confused

On that level of income pension contributions are generally irrelevant for income tax purposes - you normally get basic rate tax relief at source, the pension company sorts this without any involvement from you - and it has no affect on your personal income tax.

little-spender

hi
thanks
But even when I check martin's Income tax checker it still states I should be paying approx £150 less tax and my take home pay should be £150 p/y more ????. Every site I check it on states the same.

Dazed_and_confused

little-spender wrote: »

hi
thanks
But even when I check martin's Income tax checker it still states I should be paying approx £150 less tax and my take home pay should be £150 p/y more ????. Every site I check it on states the same.

Don't know what calculators you are using but if you use the hmrc paye tax calculator then the tax due on code 816L is £406.60/month on wages of £2714.66. £406.60 x 12 = £4879 (it is normal for PAYE to under deduct a pound or two).

Are you using the correct tax year?

little-spender

From what i believe the HMRc calculator does not take into account pension cont. Using 12/13 Tax year.

Reading through other threads...... Could this be because they are Taking the Pension contributions from my Net pay, rather than the gross pay.

Dazed_and_confused

Hmrc calculator takes into account your code and taxable pay. What type of pension payments are you making, personal pension, superannuation?

little-spender

Not too sure, The work takes the payments from wages before I get anything. how do I check.

Dazed_and_confused

little-spender wrote: »

Not too sure, The work takes the payments from wages before I get anything. how do I check.

Check your payslip, your "taxable" pay may be less than your monthly salary figure

little-spender

Thanks

Payslip does not give Taxable pay. It only gives Basic pay, Total Gross , ytd figure. These tally with what my Gross income would be.

little-spender

When I put the figures into Martins calculator, if I take away any Pension contributions then it says I should be paying the amount of tax that I am. Now surely if my employer is taking off my Pension before I receive any wages then I should get a bit of tax relief on that?

Just trying to understand why , before i go to my employer.

Davide123

you are getting tax relief for the pension contributions.

It's coming off gross pay, meaning that you aren't paying tax on that pay, therefore you are receiving a tax relief