Why do people ask for gross pay when calculating things?

[BeckettsandChapel]

Why do you always get asked for gross pay when your asked for things like council tax support? It’s not like paying tax or national insurance is optional so why do these get taken into account when people calculate benefits ? Surely it’s net pay that should be taken into account as that’s what you actually have to spend

it's a more easily comparable number - gross salaries are always used (not only for benefits but really for any salary comparison)

employers take out things like loans, pensions, etc. from pay so often people quote the wrong net pay number and it's not easy to compare it to others pay

Possibly because net pay is after other more 'optional;' things like pension deductions, union dues or child support payments?? i guess gross pay means that clever folk can't manipulate the sytem/

Net might be what you actually have left to spend, but my DH for example...... They might take the compulsory tax and NI off, but the tax is also based on lot's of benefits that would cost extra if not provided... private healthcare, car allowance, petrol allowance, then into his private pension. So he might match someone else with net pay, but he has more in monies worth before tax is taken.

I think I've been clear as mud!! lol

I’m a housing benefit and council tax support assessor.

When calculating earnings we deduct full tax and national insurance and half of pension contributions.

Lots of employers have all different deductions schemes which we wouldn’t take into account. For example sky employees can buy iPads TVs etc and pay for them in instalments from their wage.

If you deduct tax and national insurance then why when I receive my notice from the council I am in the pay band that of x per week which is gross pay ?

I understand if you have other things coming out but what about people who just have statuatory things like national insurance, tax and the statutory pension contribution

There is no statutory pension, is only an obligation for an employer to offer the provision. You can opt out. Your band is on gross as the council tax office know how much tax and NI will be paid on this as it's the same for all, it's really not complex.