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Sam, Accountant
Category: Tax
Satisfied Customers: 14154
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I am starting a new job soon and the company are enrolling

Customer Question

I am starting a new job soon and the company are enrolling me into a Work Pension Scheme. They are taking my contributions on my full salary and are taking my contributions before they calculate my tax. Question: do i subtract my pension contributions from my taxable income before i calculate my tax?
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.


Have you just asked this question> If so check MY Questions for your answer

I advised

Yes pension contributions are taken from pre tax income, so that tax relief can be allocated against them by the pension company - thereby boosting up your side of any contributions

Then your salary is considered for any tax and national Insurance (after the monthly exemption for each is applied)

Let me know if I can assist further

So yes you subtract your pension contribution before calcualting your tax -