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P60 question
Special_T
Posts: 192 Forumite
in Cutting tax
Hi - just a quick query re P60 from my husband - would appreciate if anyone can confirm please?
P60 shows income taxable income less pension contributions. Roughly £53k less 12% = £47k.
Would higher rate tax apply? (i.e. would it be based on gross income or taxable income after pension contributions?)
Reason for trying to confirm is re savings interest tax.
Many thanks.
P60 shows income taxable income less pension contributions. Roughly £53k less 12% = £47k.
Would higher rate tax apply? (i.e. would it be based on gross income or taxable income after pension contributions?)
Reason for trying to confirm is re savings interest tax.
Many thanks.
0
Comments
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I presume what what you really mean is that the P60 just shows £47k?
If he makes "net pay" pension contributions then you need to look at the total of his taxable income i.e. taxable pay of £47k, company benefits, interest, dividends etc etc to work out if he is deemed a higher rate payer or not.
Then once you know that you know if he gets £500 or £1,000 savings nil rate band (aka Personal Savings Allowance).1 -
Thanks Dazed_and C0nfused.
Yes - P60 shows £47k
No co benefits or dividends - with interest rates going up, interest received will be around £800.0
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