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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5831
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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I've just received my HMRC tax coding for this financial

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Hi, I've just received my HMRC tax coding for this financial year. I have been on to the HMRC gateway, and changed my total expected earnings for the year. My question is, should I include my total salary for the year, or should I remove items that are covered by salary sacrifice, such as pension contributions?
JA: Have you talked to a tax professional about this?
Customer: Not yet!
JA: Anything else you want the Accountant to know before I connect you?
Customer: I earn over 100k, but that's it.

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

Please clarify for me

You say you earn over £100k...is that before or after pension contributions

Many thanks

Customer: replied 6 days ago.
That's after pension contributions. Earnings last year were 116k, and will probably be around 120k this year.

Thank you for your reply.

Earnings over £100k have an impact on personal allowance. Personal allowance reduced at a rate of £1 of allowance for every £2 of income over £100k.

You should include your taxable salary (after removing items that are covered by salary sacrifice, such as pension contributions) for tax coding purposes.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 6 days ago.
Thanks! So, on a payslip, Gross Pay reflects total pay after items such as salary exchange pension have been removed? And it's the Gross Pay that HMRC are interested in for coding?

Thanks for your reply.

Its the gross pay that HMRC take into account for tax coding purposes.

I hope this is helpful and answers your question.

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