Staff disclosure note

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For the payroll disclosure note in financial statements being prepared under FRS, am I right in thinking that the salaries disclosed are gross i.e. before any deductions such as pension, salary sacrifice etc.?

I've always prepared this note gross but have come across a set which deducts these types of things and am now questioning!

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By johngroganjga
24th Jun 2023 20:33

Surely it’s whatever figure is in the accounts.

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By paul.benny
25th Jun 2023 08:47

S411 CA2006 requires disclosure of

the total staff costs of the company relating to the financial year broken down between
(a)wages and salaries paid or payable in respect of that year to those persons,
(b)social security costs incurred by the company on their behalf, and
(c)other pension costs so incurred

Whilst not the clearest of drafting, I think it's unequivocal that it's gross pay.

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Replying to paul.benny:
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By Hugo Fair
25th Jun 2023 11:50

You're too generous in describing it as "not the clearest of drafting" ... it's frankly atrociously vague.
But in terms of OP's question, I agree that gross pay should be used.

However, note for OP:
* Salary Sacrifice is a contractual *reduction* in salary (not a deduction); so a person's "wages and salaries paid or payable in respect of that year" will be *after* salary sacrifice.

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Replying to paul.benny:
RLI
By lionofludesch
25th Jun 2023 12:28

paul.benny wrote:

S411 CA2006 requires disclosure of

the total staff costs of the company relating to the financial year broken down between
(a)wages and salaries paid or payable in respect of that year to those persons,
(b)social security costs incurred by the company on their behalf, and
(c)other pension costs so incurred

Whilst not the clearest of drafting, I think it's unequivocal that it's gross pay.

I agree. Though I can see how someone might interpret salaries paid as net pay.

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Replying to lionofludesch:
Routemaster image
By tom123
05th Jul 2023 19:29

Taxable gross is what I would use as the starting point

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