taxable income v salary help

amyandoli

Hello,

Can anyone help me with tax and tax credit please as I'm all flustered.

What's the difference between salary and taxable income?
What figure do I give HMRC for tax credits? Should it be the total for year pay figure off the P60?

If it makes any difference my OH is a teacher, I don't 'work' I look after our 2 and 3 year olds. I've been told that teachers don't pay tax on teachers pensions... and what's left is taxable income?

Any help very gratefully received

I'm in fear of owing them any money. Currently we get no tax credits but if its taxable income then on the tax link mse have we would be entitled to some and it would make a huge difference to us.

CLAPTON

Where can I find my annual income figure?

If you are an employee, the end of tax year statement you get from your employer (a P60) should give you the information you need for your tax credit claim. The figure you need is the gross income amount, before tax and National Insurance.

If you get benefits from the Department for Work and Pensions (DWP), you should get a statement of taxable benefits at the end of the tax year.

If you are self-employed, you should normally use the business profits (or loss) figure from your self assessment tax return.

or maybe read more
http://www.litrg.org.uk/tax-guides/tax-credits-benefits/tax-credits/what-counts-as-income-for-tax-credits#annin

jem16

Linton wrote: »

Taxable income includes money you pay into a pension. It is taxable, but you get tax relief on it.

Pension payments are deductible for calculating tax credits. As the OP's husband is a teacher and pension contributions are taken before tax, then taxable income is the P60 figure which is gross minus pension contributions. Her husband can also deduct the amount paid to the GTC for Professional Subscriptions.

OP - this might help you work out what to include and what not to.

https://www.gov.uk/tax-credits-working-out-income

amyandoli

jem16 wrote: »

Pension payments are deductible for calculating tax credits. As the OP's husband is a teacher and pension contributions are taken before tax, then taxable income is the P60 figure which is gross minus pension contributions. Her husband can also deduct the amount paid to the GTC for Professional Subscriptions.

OP - this might help you work out what to include and what not to.

https://www.gov.uk/tax-credits-working-out-income

The GTC doesn't exist anymore does trade union count? It's NASUWT. The link was really helpful thankyou and yours clapton x

jem16

amyandoli wrote: »

The GTC doesn't exist anymore does trade union count? It's NASUWT.

Ok - GTC still exists in Scotland.

I don't think trade unions would be counted as they're not a professional body but I don't know for sure.

xylophone

https://www.gov.uk/government/publications/professional-bodies-approved-for-tax-relief-list-3/approved-professional-organisations-and-learned-societies#n

jem16

xylophone wrote: »

https://www.gov.uk/government/publications/professional-bodies-approved-for-tax-relief-list-3/approved-professional-organisations-and-learned-societies#n

As with the EIS in Scotland the NASUWT is approved for tax relief purposes.

Does this also apply to tax credit purposes though?