Do employers contributions count towards gross pay??

SpeedSouth

Hi,

Just went round and round with a HRMC rep on the phone after trying to get my tax code adjusted.

At one point he was saying that employers pension contributions count towards my gross pay so pushing me into the 40% tax bracket.

This is the first time I've heard this. His insistence was my employer contributions meant I was liable for more tax rather than less because of my contributions.

This is not the case is it?

Upshot is I'll wait till I get my P60 and try again I think.

GunJack

no, it doesn't...

RickyB2000

Err, regardless, as soon as it goes into a pension it is no longer taxable so it doesn't really matter.....

If your employer handed you the cash, then taxable. However, if you then put it into a pension then it is not taxable again

Unless you have exceeded annual allowance?

thenudeone

No.
Employer's contributions do not count as your taxable income

SpeedSouth

Exactly as I thought... I was really struggling to try and get him to understand my point...

Hopefully the next one will be more clued up when I see my p60.

Not exceeded anything, just made enough to reduce all the 40% liability. He was asking for proof of my contributions too

zagfles

Assume you're after relief for personal pension contributions? You've not made it clear.

If it's employer contributions or sal sac or your contributions to a workplace pension via "net pay" you already get the relevant relief so you don't need to claim anything from HMRC.

Some workplace pensions take employee conts off after tax and the scheme claims the relief, in this case you can get additional 40% relief but these schemes are the minority.

xylophone

I cannot now find the thread but I seem to remember a long one concerning a poster who was a member of an occupational scheme with a net pay arrangement but who made an additional lump sum contribution from taxed income and had a long battle with HMRC to obtain tax relief?

Does this ring a bell with anybody else?