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Threshold Income?

Do professional subs count in this calculation

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Client hospital Doctor has pensionable earnings circa £130k, £18k superannuation so on the face of it above £110k for threshold income for Tapering of Annual Allowance, but they do make professional subs of £2.5k so if factored in they are below £110k and Tapered AA does not apply.  Now there are certain deductions in the various steps in ITA 2007 but s343/344 ITEPA 2003 do not seem to be there. Looking further at HMRC guidance 'net income' seems to be the starting point, so are professional subs deducted from employment income for purposes of net income so in this cas client is below £110k threshold income?

Any help here would be most appreciated.

 

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By Jholm
06th Mar 2019 12:37

Without researching, I would be inclined to say yes they would be deducted to arrive at the 'net employment income' for lack of a better term.

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By Branski
to Jholm
06th Mar 2019 12:44

Thanks, and would tend to agree. Our tax software calculates it that way but just can't find in legislation or HMRC manuals.

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06th Mar 2019 12:46

1. Why tapering?
130k + 18k = £148k which is less than £150k?

2. Why earnings only, do they not have other income?

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By Branski
06th Mar 2019 13:02

Employer contributions (not salary sacrifice) which would take adjusted income to over £150k - didn't mention as just wanted to clear up threshold income point.

Thanks for pointing out!

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08th Mar 2019 04:17

which would take adjusted income to over £150k - didn't mention as just wanted to clear up threshold income point. https://www.9apps.red/

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By DSG
31st May 2019 12:30

when assessing threshold income (using the member's tax computations, which is more accurate, as global income is included) you do need to deduct the gross member contribution (whether under relief at source method or net pay scheme) from total income, to arrive at the threshold income. Then, when calculating the adjusted income, you add the pension input amount (growth) and then deduct the gross member contributions, to arrive at the correct 'adjusted income' value; all too often this is not being observed by the clinicians or moreover, their tax advisers. best wishes Darren Scott-Guinness.

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