Confused about Tax Credits/ my pay

[PartyRingss]

Hello,

I've just been looking at my pay slips and P60. On my pay slip it says "Annual Salary 8,657.76" and on my P60 it says "Total for year 8256.12."

My pension contributions are £39.68 per month so I assume the P60 doesn't include pension in your annual salary? There's nothing written on the P60 about pension contributions.

When I have renewed Tax Credits last year I just went on the figure on the P60. Was that not correct? I'm panicking now and sorry if I sound like a right thicko 😞

I don't know but l am confused too. I only started claiming in June 2017 and my payments went down this month. On looking at the award notice letter they sent, they assume I'll get a pay increase..... l work in the NHS so no hope!

This has a couple of examples at the bottom of the page: revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/what-is-income/calculating-tax-credits-income/

For tax credits you declare all income minus 100% of pension contribution. Not sure how your pension is being done but I suspect it may be coming out of your pay prior to income tax/NI being calculated thus is not showing on the P60.

Just looked at my payslips and p60 from last year and mine are different too.

Because mine is the NHS pension it comes directly out of my salary so l don't think that would cause a difference. It is so confusing. I used my p60 to make my original claim as l see that as being the most accurate..
..or maybe I'm wrong?

Have a look at this - l apologise for the link!!
www.netmums.com/coffeehouse/house-garden-194/money-finance-entitlements-267/570299-nhs-p60s-tax-credits-can-anyone-help-please.html

I work for the council so I suspect it probably is taken directly out of my salary before tax and NI?

Mine comes direct from my wages too and l have a discrepancy so what it says via the link applies to me

You need to declare your P60 figure to tax credits, they are only interested in taxable income. So figure after pension is deducted but before tax and NI is deducted. If you have anything else like professional fees or charity donations, you can put them on the form and deduct them from your total income as well. Anything that you have gift aided counts as a charity deduction eg, National Trust membership, or random times you have sponsored people if you have evidence eg if you used Just Giving site or something like that. Read the notes file before you fill in the form and it will tell you all of this, but last time I did it it didn't make any of this clear on the form.

lost surely you only deduct charitable donations you have NOT giftaided? Otherwise you would be claiming tax relief on them twice? (Once from your own tax, and once as the gift aid claimed by the charity)

Nope, you def deduct them. You even get to gross it up. See page 2:
assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/683480/TC825_04_18.pdf

Higher rate tax payers get tax relief on gift aided donations as well although they only get 20% on the full amount.

So if you pay £100 gift aided for membership of national trust say.
If claiming tax credits, you get to lower your income by £125, so you gain £125 x 0.41 as the taper rate is 41p in the pound. (Save £51.25 so membership actually costs you only £48.75)
If a higher rate tax payer, you get to claim difference between higher rate and basic rate tax on the full amount so £125 x 0.5. (save £25, making membership £75)

Its really only base rate tax payers who pay full price.

Sorry if my maths is out btw, have horrible cold so brain not working great.

Example on HR tax payer is here: www.gov.uk/donating-to-charity/gift-aid

Oops, spotted a mistake in my maths, 20% is not 0.5, its a fifth, it would be 0.2. Aah well. Should not do maths when ill.

I have given a few donations over this past year. How do l prove that though?

lost my mind is blown!!!!
Thank you!!

MyBoysandI anything online eg through Just Giving they usually send you a confirmation email. Same with anything like memberships or visits you have made to charity places online you will almost certainly have a confirmation email. If you paid on the door then you should have the physical receipt however unless you are claiming a lot they are unlikely to query it so if you remember things you could look back through your bank account for the correct figures. Some places eg charity shops will send you a letter once a year saying how much they sold your stuff for so how much you should declare for tax purposes.

Thank-you

I haven't done a renewal yet as l onjy started claiming in June 2017. Do they have individual boxes for thing's like professional fees and charity payments?

I have updated mine online