URGENT - PTC - Pensions

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
How do I treat these and what tax implications are there?

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:URGENT - PTC - Pensions

    Please could someone clarify this or tell me off and tell me the correct way.

    Employee occupation pension gets deducted from gross.
    Employee gift aid and personal pension contributions extend the tax band (22%)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:URGENT - PTC - Pensions

    Yes that's correct.

    You deduct employee contributions to work pension from gross salary along with payroll giving to give you the salary you use on the tax return.

    Ignore employer contributions.

    Private pensions grossed up increase the basic tax band the same as gift aid.

    Good luck!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:URGENT - PTC - Pensions

    Cheers, I'm glad someone replied as I was about to set off!

    I've had an exam each day this week so I'm amazed I revised as much of this as I did in just one afternoon!

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