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Where Taxpayers and Advisers Meet

Total Pay vs Gross Pay for HMRC

rwgs
Posts: 1
Joined: Thu Aug 01, 2019 4:32 am

Total Pay vs Gross Pay for HMRC

Postby rwgs » Thu Aug 01, 2019 4:52 am

Hi, my partner's pension contributions are Net Pay, (i.e. taken off before tax/NI is calculated etc.)

I understand how this works, but what I'm not clear on is what income is then (or should be) reported to HMRC every month?

Is it income before the pension is taken off (i.e. Total Pay as the payslip calls it), or is it the income after the pension has been taken off that they actually pay tax on, (i.e. Gross Pay as the payslip calls it.)

If it's meant to be the "Gross pay", then it means their overall salary registered with HMRC is lower than what they were actually paid (as the pension contributions have been taken off). If they'd been on a Relief at Source pension, then it would have been the equivalent of the "Total Pay".

So is this correct, or is my partner's employer reporting the wrong income to HMRC (which will of course have it's own consequences).

Hopefully this all makes sense.

Thanks

someone
Posts: 383
Joined: Mon Feb 13, 2017 10:09 am

Re: Total Pay vs Gross Pay for HMRC

Postby someone » Thu Aug 01, 2019 7:51 am

It's the gross pay.

If you partners income exceeds 150k including pension contribution then you might need to worry about 'total pay' when doing SA but gross pay is what goes to HMRC and ends up on the P60.

The pension contribution is not included in the SA box for pension contributions.

robbob
Posts: 2826
Joined: Wed Aug 06, 2008 4:01 pm

Re: Total Pay vs Gross Pay for HMRC

Postby robbob » Thu Aug 01, 2019 10:30 am

If it's meant to be the "Gross pay", then it means their overall salary registered with HMRC is lower than what they were actually paid (as the pension contributions have been taken off). If they'd been on a Relief at Source pension, then it would have been the equivalent of the "Total Pay".
Technically speaking its neither gross pay or total pay that is reported to hmrc - the pay that is reported to hmrc is the "taxable pay" - although it seems reasonably obvious here that the gross pay is the taxable pay being declared (without them saying it?) if it is working correctly as you have presumed.

If in doubt check last payslip/payslips of last tax year with p60 - gross pay totals should match taxable pay totals.

If still in doubt work back from taxcode and manually calculate tax (by using google found online calculator !)


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