Pay difference Tax?

LightKnow

So there difference between my yearly salary and what's on HMRC site,? It not a small difference either 😕 i been with company over 2 years so would thought they would had my yearly pay right

Does over time get taken into account ? As I thought was just basic pay 

TheSpectator

Your employer should report your taxable pay which may differ from gross pay for various reasons such as pension contributions, salary sacrifice schemes. Overtime is taxable pay so should be reported - not sure why you would think otherwise?

Devongardener

Cross check the numbers with your last P60, which shows taxable pay after of your pension contributions, this will be the value shown in your HMRC account.

Dazed_and_C0nfused

LightKnow said:

So there difference between my yearly salary and what's on HMRC site,? It not a small difference either 😕 i been with company over 2 years so would thought they would had my yearly pay right

Does over time get taken into account ? As I thought was just basic pay 

Your salary and earnings for tax purposes are often different.

Common reasons for this are that you either contribute to a pension that uses the "net pay" method.

Or you have a agreed to a reduced salary in return additional employer pension contributions.

Overtime is taxable income.

la531983

My salary on my P60 every year doesnt include my pension contributions.

p00hsticks

la531983 said:

My salary on my P60 every year doesnt include my pension contributions.

That would suggest that your employer perhaps uses an salary sacrifice scheme and so the pension contributions are made by them, not you, in return for you taking a lower salary. 

TheSpectator

p00hsticks said:

la531983 said:

My salary on my P60 every year doesnt include my pension contributions.

That would suggest that your employer perhaps uses an salary sacrifice scheme and so the pension contributions are made by them, not you, in return for you taking a lower salary. 

Not neccessarily, a net pay scheme would have the same effect as the contributions are taken before tax.

la531983

p00hsticks said:

la531983 said:

My salary on my P60 every year doesnt include my pension contributions.

That would suggest that your employer perhaps uses an salary sacrifice scheme and so the pension contributions are made by them, not you, in return for you taking a lower salary. 

You would be incorrect.

la531983

TheSpectator said:

p00hsticks said:

la531983 said:

My salary on my P60 every year doesnt include my pension contributions.

That would suggest that your employer perhaps uses an salary sacrifice scheme and so the pension contributions are made by them, not you, in return for you taking a lower salary. 

Not neccessarily, a net pay scheme would have the same effect as the contributions are taken before tax.

Not as such. I work in local government, my P60 in the "pay in this employment" box is my salary minus the 6.5% (?) pension contribution taken from my salary. I am not guaranteed an amount after tax, the salary is advertised as gross as per most jobs.

LightKnow

While I look into it and find my P60 

I want ask this too, So the tax band your in is based on base salary, but I wouldn't of thought doing overtime would impact this , if so say , my overtime some how make my total salary over 30k does that mean I be under higher tax banner, even tho it's not my base salary?

So here the thing if yearly salary is 25k e.g the difference on HMRC site shouldnt be like 6k extra  different that absurd, there no way I can work that much 

la531983

LightKnow said:

While I look into it and find my P60 

I want ask this too, So the tax band your in is based on base salary, but I wouldn't of thought doing overtime would impact this , if so say , my overtime some how make my total salary over 30k does that mean I be under higher tax banner, even tho it's not my base salary?

So here the thing if yearly salary is 25k e.g the difference on HMRC site shouldnt be like 6k extra  different that absurd, there no way I can work that much 

You pay tax based on the amount you earn in any given tax period (monthly if paid monthly). Going over £30k wont trigger a change of tax percentage anyway, that wouldnt happen until just over £50k (at time of typing).

The answer to this wont be overtime btw, its almost certainly a pension deduction. Can you at least confirm you pay a pension through your employer and its a deduction on your wages every month?

Basic rate	£12,571 to £50,270	20%
Higher rate	£50,271 to £125,140	40%