P45 Question

[ObSceney]

Does the P45 "total pay" section include work place pension contributions or is it the gross after pension contributions have been taken out?

I'm guessing it is after pension contributions have been taken out and the amount you have been taxed on?

[Beetnik]

The P45 figure is your taxable gross to date.

In the ordinary scheme of things this will include your employee pension contributions - the tax paid is returned to you by way of a credit to your pension fund.

So to answer your specific questions: No, it's before pension contributions and Yes, it's the gross amount you've been taxed on.

[ObSceney]

Thanks Beetnik.

Is there anything else like salary sacrifice that can effect the "total pay" number?

[onetwothreefour]

I believe salary sacrifice is not included (that includes pensions if applicable)

The purpose of the p45 is to allow a new employer to guesstimate the amount of paye tax to deduct. Since salary sacrificed stuff doesn’t impact your tax,it is not included.

Nowadays hmrc like to send out coding notices every time you blink, which in my experience are usually wrong , but at least in the right ballpark.

Edited by onetwothreefour on Saturday 30th April 14:17

[craig1912]

Beetnik said:

The P45 figure is your taxable gross to date.

In the ordinary scheme of things this will include your employee pension contributions - the tax paid is returned to you by way of a credit to your pension fund.

Unless it’s a DB pension scheme and then it won’t include pension contributions and also some DC schemes where tax relief is at source.

[ObSceney]

Thanks all!

My childcare vouchers and cycle to work loan would not be included on my P45? I think these are classed as salary sacrifice?