Income tax calc. on gross pay or net of NI?

Beenie

I hope someone knows the answer to this. I have googled but don't think the answer is clear.

When calculating income tax, is the sum deducted based on gross pay or the net pay after NI deductions?

comeandgo

Gross pay.

Jeremy535897

Gross pay. NI has no impact on income tax calculations.

Beenie

 Thank you both. My husband retired six years ago and has been paying additional Ni conts to make up for years as a non-earning student. He was rather excited that he might be a due a tax refund over six years. I'll break it to him gently.

unholyangel

NI is deducted from gross pay. Income tax is deducted from gross taxable - which may or may not be the same as the gross pay. 

Beenie

This is what I meant by the internet being unclear. Every site I've looked at mentions gross taxable but does not define what that is ( pay before deduction of NI or after?)

Husbands situation is made more unclear because he no longer has an employer operation PAYE. He has paid additional 'top up' NI conts to bring his state pension up to max (he is still under pensionable age incidentally).

He thought he could claim a refund on the pension payments made, just as you can with private pensions (AVCs, RAR or whatever it's called these days)

unholyangel

Beenie said:

This is what I meant by the internet being unclear. Every site I've looked at mentions gross taxable but does not define what that is ( pay before deduction of NI or after?)

Husbands situation is made more unclear because he no longer has an employer operation PAYE. He has paid additional 'top up' NI conts to bring his state pension up to max (he is still under pensionable age incidentally).

He thought he could claim a refund on the pension payments made, just as you can with private pensions (AVCs, RAR or whatever it's called these days)

Gross taxable is simply the gross pay minus any non-taxable payments. It has nothing to do with NI deductions (before or after they're made). 

I'm slightly puzzled here. Are you saying he thought he could claim a refund on the NI contributions he made? 

Beenie

He thought tax was deducted after NI conts had been made i.e. PAYE tax levied on the net figure. Seeing as he has paid direct to NI in Newcastle (I think) he thought he could set it against his taxed works pension. I now understand from the previous two replies that this is not possible. 

Jeremy535897

It's an understandable mistake. Contributions to personal pensions are allowable depending on circumstances, and stakeholder pensions will qualify for tax relief (the government contributes the basic rate to the scheme), so why shouldn't contributions to state schemes? The simple answer is that they don't.