I pay into a company pension scheme where my contribution is deducted at source. Last tax year I estimated with tax credits my 'salary' figure, for illustrative purposes lets say it was 30K. But I joined the pension scheme and 5% went into the scheme, my taxable pay is actually 28.5K. My wage slip reflects both gross and taxable pay.
I had recently become aware that the figure you give to tax credits was the taxable figure - i.e 28.5K.....so this is what I wanted to estimate for the upcoming year.....and because I am close to a threshold it really makes a difference, plus when it comes to renewals time for last tax year I think I 'over-estimated' because it was based on gross not taxable.
So the advisor today said it was the gross pay figure - I asked her to check about the pension thing and she came back and said that it was gross taxable. I said that this was 2 different figures sho she went to check again. ANyhow, returned and said it was the gross income figure - i.e the 30K
Does anyone know more about this?????