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Clarification of Taxable Income - HMRC vs Employer

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Hi there,

Relatively new to the UK tax system and just wanted clarification about Taxable Income. I'm clear on my tax band and NI contributions but unsure how to read my Taxable Income according to HMRC and on my payslips. I'm on a contract, my monthly gross income x 12 on my payslips is in line with what my contracted yearly income from my employer should be but when I log onto HMRC and check my taxable income, the amount is about £550 lower. My employer isn't underpaying me but wondering why there would be this discrepancy on the HMRC site?

Thanks in advance for any help or advice!

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  • biscan25
    biscan25 Posts: 452 Forumite
    First Anniversary First Post Name Dropper Combo Breaker
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    Do you pay for any benefits through salary sacrifice? E.g. pension contributions, or cycle to work scheme etc.
    For the purposes of HMRC, you these are outside of taxable income, and treated as if you never earned this money, thereby saving tax, NI etc.
    Pensions actuary, Runner, Dog parent, Homeowner
  • Dazed_and_C0nfused
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    Net pay pension contributions can have the same impact.

    For example salary of £20,000 with 5% net pay pension contributions is taxable income of £19,000, not £20,000.

    HMRC are usually interested in what your taxable income is, not your salary.
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