Seld Assessment and pension contributions

zagfles

jamesd wrote: »

Yes, if the employer reports to HMRC a lower gross pay amount that will also have the effect of telling HMRC what they need to know to tax the 3k correctly. So no issue if the taxable pay shown on the payslip and P60 has that lower number on it.

How can it possibly be done any other way? If the deduction is from gross pay then the amount reported as taxable income will be the amount after the pension conts are taken off, by definition.

It's only if the pension conts are deducted from net pay that they should be declared on a tax return.

jamesd

With deduction from gross pay I think it has to be done that way and my example was of something that can't happen. With deduction from net pay there could still be an issue.

jamesd

MichelleUK wrote: »

Hmmm... this does not sound like how I understand the calculation. Just off to run some numbers to get it straight in my head!

Edit: Just noticed bowlhead99's post.....feeling relieved as my calculations worked fine when I ran them through!

Yes, you didn't miss anything in the deduction from gross pay case, it was me missing what the employer would report, causing the employee to automatically tell HMRC the correct number when entering the P60 information. Sorry to have worried you!