.Gov site information

GibbsRule_No3.

Just signed into the .Gov site to check my State Pension and checked my other info whilst there. Can someone confirm that as my stakeholder Pension is probably salary sacrifice that is the reason for the difference between my payslip yearly amount and the amount they are using as a tax income? Nearly £4000 difference between the two numbers. If the Stakeholder Pension has nothing to do with the numbers should I contact HMRC?

Dazed_and_confused

Are you referring to the Real Time Information details sent by your employer (which can be viewed on your Personal Tax Account) or the estimate of your annual taxable pay amount used in calculating your tax code?

GibbsRule_No3.

My payslip says annual pay is £4000 more than what it says is being taxed. The two Private pension, in payment, underneath are correct. When I multiply the Stakeholder - Pension SS -271.40 listed on the payslip by 12 it is near enough the missing amount that the Government site has for the pay, so I expect what I asked is the answer, just checking to be sure as £4000 is a lot to be taxed on in a few years if they have just missed £4000 for possibly 6 years.

Dazed_and_confused

Isn't the whole point of salary sacrifice that you are agreeing to forego some of your salary in return for your employer contributing to your pension scheme.

As a consequence your (taxable) salary is less and although you miss out on pension tax relief (none is available to you on an employer contribution) you gain by not having the salary to be taxed in the first place.

The additional bonus being there is no National Insurance to pay on the non existent (sacrificed) salary.

GibbsRule_No3.

Yes, but I guess I was still surprised that the numbers were not shown as the same. It is not as though it knocks off the PA that I’m not paying tax on. To me it was just a strange look and only after I asked the question, did it occur to me that it was probably the salary sacrifice that was causing the difference.

Dazed_and_confused

Your "salary" really has no relevance for tax purposes.

HMRC are interested in your taxable income.

It's just the same with a "net pay" pension scheme. You might have a salary of £40,000 but if you pay 10% to a net pay pension scheme your taxable pay (the bit that goes on your P60) would be £36,000.

Similar with salary sacrifice. If your salary is £40,000 and you agree to give up say 10% your P60 would show taxable pay of £36,000.

Some payslips will have 4 different pay figures,
Salary/wages
Pay for pension purposes
Pay for tax purposes
Pay for NI purposes