one GP has salaried job and also locum job on self employed basis.
the pension from salaried job is total gross on every monthly wage slip (for 5 months)is 4156.91 and gross for tax is 3890.29 (deducted employee pension 266.62 before tax).3890.29 minus tax = 3489
than employer pension(401.36) deducted from net amount after tax and remaining salary paid to the gp.
My question is
From salaried job in above scenario will any pension figure will go to the tax return if yes than what figure(both employee or employer pension or any of these and on which box.I think box 3 of TR4.)
Replies (15)
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Not included
Don't include the pension payments in salary.
Gets it right every time, no matter what your marginal rate.
Follow the P60
If you use the total taxable pay for the year figure it will have already been adjusted for superannuation so no entry is needed on the return. You should see a different total salary for NIC as that will be the full salary.
You will need to see the payment slips for the locum income / self employment as some services do also have superannuation deducted at source which will need to be claimed on the return as it is not an expense of the self employment
Doctors are a very specialist area and you could talk to a local accountant who is a member of AISMA
P60 tells you
On the employment page you enter the total taxable pay for the year.
You must be reading boxes wrong as there is no figure which deducts both employee and employer pension contributions. The salary shown in the NIC section is the gross before any deductions and will be the same or higher than the taxable pay figure.
Q1. Do the 20% tax payers need to declare their auto enrol. pension contribution in their individual tax return ?
Q2 - Do the 40% tax payers need to declare their auto enrol. pension contribution in their individual tax return ?
If yes where ?
Please.
Thank you
No
They just get less gross pay.
Tax is automatically correct.
For example...
Employee's salary is £10000
AE pension at 1% £100
P60 says £9900. Hurrah !!
Sometimes I think we lose understanding by relying on software ..............
Prove it yourself
would the situation be changed for a 40% or higher tax payer ?
No.
You can prove it yourself with a biro, back of an envelope and a calculator.
@Lion
back to pen and paper - much quicker, especially given my IT problems since the beginning of December. At least no service has at least risen to an upload of 11 now - sometimes I wish I knew what that meant.
Just wondering if you still had to apply for net pay arrangements or if autoenrol was automatically in - I don't remember reading about that aspect
One
Just wondering if you still had to apply for net pay arrangements or if autoenrol was automatically in - I don't remember reading about that aspect
I've only got one AE case so far, but the P60 shows gross pay (for tax) net of pension contributions.
If relief at source method ( net contributions) is used, higher and additional rate taxpayers have to claim further tax relief via self assessment tax returns.
The extra relief is given by extending the basic rate band .
PM for more details.
email from regulator received
just after receiving WESTA post above.
Subject - Tax Relief
A scheme with a lot of low paid employees advised to opt for non-net pay arrangement so low paid do not lose out on tax relief -
Option can only be made once for the scheme