tax credits/ salary sacrifice

valhalla12

hi all

i have started a new job that salary scrifices my pension,
i normally inform tax credits when i get my p60 and give them my gross anual earnings

which will be lower because my company have taken my pension off first

my question is when I ring up and submit my annual gross wage do I give them what it says on the p60 or do I have to add the amount that on top that my employer has taken off before tax

thanks

zagfles

Give them your P60 ie pay after the sal sac.

valhalla12

wow that was quick

thanks
just don't wont them coming chasing me in years to come wanting it all back

Sambella

zagfles wrote: »

Give them your P60 ie pay after the sal sac.

Are you sure about this?

The forms state that you only deduct 'pension contributions NOT paid from your salary'

densol_2

Sambella wrote: »

Are you sure about this?

The forms state that you only deduct 'pension contributions NOT paid from your salary'

Zagfles is correct. The figure on the P60 is after the pension has already been deducted - so you dont deduct again. If you were to pay money into a seperate private pension, then you would manually do the calculation and provide them with the new reduced figure after deducting the pension.

Darksparkle

Agree with zagfles and densol. If salary sacrifice it's already taken into account on the P60 so doesn't need to be deducted again.

If paying into a pension after tax or through a private arrangement then you make the deduction yourself.

Sambella

what about pension contributions say 5.8 % paid through salary to LGPS for example?

Seems odd that you can choose to reduce a salary and that salary is then deemed not enough to live on so you then get tax credits.

Darksparkle

Sambella wrote: »

what about pension contributions say 5.8 % paid through salary to LGPS for example?

Seems odd that you can choose to reduce a salary and that salary is then deemed not enough to live on so you then get tax credits.

If it's deducted before tax it's already deducted from your P60, therefore you just give the P60 figure.

If it's deducted after tax or through a private arrangement you make the deduction yourself.

valhalla12

they take it off of me before tax
so I don't pay has much, and neither do they
so when I get my p60 its showing a lower amount

densol_2

Sambella wrote: »

what about pension contributions say 5.8 % paid through salary to LGPS for example?

Seems odd that you can choose to reduce a salary and that salary is then deemed not enough to live on so you then get tax credits.

This is correct - you can in fact reduce your salary to the threshold for WTC by paying into a private pension. Expect a query from HMRC as the RTI figure from the P60 will be far more than the declared income - but then sending proof of pension contributions will mean they reassess. It seems extraordinary but there you go. You can play around with the tax credit calculator.

valhalla12

sorry when I say tax credits its to part pay for a childminder to take /collect from school


while me and the wife work