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
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