Hi, does anyone know if they take your pension contributions off of your final year end income on your p60?
It is for tax credits purposes.
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P60
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RobertT
- EX ROYAL MAIL
- Posts: 6682
- Joined: 09 Sep 2007, 14:26
- Gender: Male
Re: P60
Pension contributions are taken before tax is paid. For example:
If your gross weekly pay is £400 and you pay £20 into your pension, your assessable pay for tax purposes is £380.
Therefore your annual gross pay of £20,800 would show up as £19,760 on your P60.
If your gross weekly pay is £400 and you pay £20 into your pension, your assessable pay for tax purposes is £380.
Therefore your annual gross pay of £20,800 would show up as £19,760 on your P60.
Links to all RM pension related websites are here
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N1-22postman
- EX ROYAL MAIL
- Posts: 68
- Joined: 13 Oct 2010, 08:31
- Gender: Male
Re: P60
If you can afford to make extra voluntary pension contributions this will reduce your annual gross pay and increase the amount of tax credits you receive. This is a tax efficient way of boosting your pension from the usual 20% tax relief to an equivalent of over 50%. I was able to manage this for a couple of years as I approached 60 and my children were still teenagers.