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Where Taxpayers and Advisers Meet

Adjusted Net Income - self assessment

Lexicles
Posts:2
Joined:Sun Sep 11, 2016 5:38 am
Adjusted Net Income - self assessment

Postby Lexicles » Sun Sep 11, 2016 5:42 am

Can the optional payments I make each month into the company pension scheme (which are deducted from my gross monthly salary) be used in the calculation of my Adjusted Net Income for self assessment tax purposes? If so, how do I show this on the self assessment form?

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Adjusted Net Income - self assessment

Postby robbob » Sun Sep 11, 2016 10:50 am

Can the optional payments I make each month into the company pension scheme (which are deducted from my gross monthly salary) be used in the calculation of my Adjusted Net Income for self assessment tax purposes?

Hello Lexicles

Your income does reduce by pension payments made but as this is a reduction from Gross salary there is no interaction with self assessment, all you need to know if that for self assessment purposes (or declaration purposes) you use your taxable pay amount which has already had the payments made deducted from your gross salary. Just ensure you enter the taxable pay shown on you P60 on the tax return and not your gross pay !!!

Lambs
Posts:1611
Joined:Wed Aug 06, 2008 3:15 pm

Re: Adjusted Net Income - self assessment

Postby Lambs » Sun Sep 11, 2016 11:01 am

Hmm, that kind of feels like a "yes" but laced with a "no"...

R is right, I think, for what it's worth. Your P60 will show a figure for taxable pay that is lower than the gross figure you received (and then had the pension deducted from it). If that doesn't make sense, then please let us know.

Regards,

Lambs

Lexicles
Posts:2
Joined:Sun Sep 11, 2016 5:38 am

Re: Adjusted Net Income - self assessment

Postby Lexicles » Tue Oct 18, 2016 8:50 pm

Hello. My P60 only gives one number so I'm not clear whether it includes or excludes my pension. Help!

Lambs
Posts:1611
Joined:Wed Aug 06, 2008 3:15 pm

Re: Adjusted Net Income - self assessment

Postby Lambs » Tue Oct 18, 2016 9:16 pm

Of course your P60 shows only one figure.

Unless there has been a mistake, the figure on your P60 will be the annual figure for (gross salary less pension contributions deducted before gross salary is taxed).

Adjusted net income includes a deduction, from gross earnings, for pension contributions that are made direct from gross earnings.

Regards,

Lambs


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