AAT Level 4 - Personal tax

thedanielleleo Registered Posts: 4
Out of the below which ones do you deduct from income tax:
Employee workplace contribution
Employer workplace contribution
Private pension payment


  • dcmcguren
    dcmcguren Registered, FMAAT, AAT Licensed Accountant Posts: 7
    EE contribution should have come off the gross salary figure on their wage slip and already reduced the amount of income tax that they had paid. If not, then this would be included in the calculation.

    Er contribution has nothing to do with EE's income tax but would be deductible from CT

    Private pension tends to be done directly from the EE's bank account but may have some investment strings attached which means their contribution is net of income tax (ie they contribute 80% and the scheme claims the 20% back from HMRC). If that is the case, then I dont think it can be used in the calculation for income tax. If it is 100%, then it is likely it can be used providing the total contributions do not exceed the annual cap on their earnings (highly unlikely though).
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