Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Fri, 01 Sep 2023 08:34:14 GMT by James
Hi, I am trying to work out my net adjusted income but am confused as to whether my pension contribution counts as an allowable deduction. According to my payslip there is "Basic pay" which is equivalent to my annual salary. Say for examples sake this is £5,000. Underneath this there is "Pension contribution", which is -£500. The company makes a contribution equivalent to this, so total pension contribution is £1,000. I am taxed on the net difference after pension contribution has been taken off, so £4,500. In this case would I be able to substract the -£500 as an allowable deduction?
Posted Tue, 05 Sep 2023 14:25:44 GMT by HMRC Admin 10
If you are unsure you should check with payroll to confirm if the amount is being deducted before or after tax.
Only the employee contribution can be deducted as the employer contribution is not used in the calculation.
Posted Tue, 05 Sep 2023 19:52:43 GMT by James
Hi, I can confirm the amount is deducted before tax. Does this mean it doesn't qualify as a deduction?
Posted Fri, 08 Sep 2023 07:13:31 GMT by HMRC Admin 20
Hi James,

If it is deducted before tax then you would use your P60 figure as your starting point as its already been deducted to get to that figure.

Thank you.

You must be signed in to post in this forum.