Change to Personal Tax Allowance

[Deleted User]

Bossworld said:

Jeremy535897 said:

I think that salary sacrifice is shown on payslips, as discussed here:
https://help.accounting.sage.com/en-gb/payroll/automatic-enrolment/salary-sacrifice-pensions.html

May depend on the payroll software being used as to how it's laid out on the payslip. Slightly off topic but SBC Payroll has improved since I worked there but IMO it's still not a patch on Sage 50 which has a fully fledged report designer.

The help centre article for SBC states:

In line with salary sacrifice guidance, the sacrificed amount shows as a negative payment on the payslip, rather than a deduction.

As all contributions are made by the employer, the total pension contributions show as employers pension on the payslip. No value shows for employee pension.

Equally, Sage 50's standard layouts, also show a negative pay element for the employee's contribution, and also shows a total 'Er pension' value. 

In the OP's example (as we understand it), this would show the 5% as a negative pay element, and the 15% total as the 'Er pension' value.

Either way, the taxable pay would reflect (pay - salary sacrificed portion) and that's what would ultimately come through on the P60, so the points made above about taking a lower salary are accurate, regardless of how the payslips show the workings out.

I can concur with all of this.

TheAble

Is HMRC overestimating your earnings for 22/23? It will say on your tax account what estimate they're using. The solution could simply be updating this to a realistic number.

71peyman71

My payslip shows my gross monthly salary on one line and the next line shows the negative amount, which is described as Sal Sac EE. In the right column, I calculate the tax deducted to be 11% of the gross monthly salary (using 1257L).

Below it, my tax year to date gross total is below 50K. So with three months to go to the end of the financial year, I don't see how they have estimated my salary to be over 100K for 2022-2023.  

molerat

But what does your on line tax account show for the estimated annual incomes ?  That is something you can change.

71peyman71

molerat said:

But what does your on line tax account show for the estimated annual incomes ?  That is something you can change.

I did. I still have to be sure what my tax is based on. 

71peyman71

Thanks everyone for your replies. 

I have just checked my online account to see what has been sent to HMRC. It seems that what they list is something in between my gross monthly income minus an amount that is ~50% less than what is deducted for my pension. I am not sure why the whole pension contribution is not deducted from gross before tax is calculated. Anyone know before I contact my payroll department?
Thanks