Hi everyone,
quick question as I have to complete a current year income assessment for student finance.
P45 shows ‘total pay in this employment’ and also ‘total tax in this employment’. i’m not sure whether the ‘total pay’ figure is before tax or after tax.
if it’s gross, does that mean I have to substract the ‘total tax in this employment’ myself in order to find out the actual take-home pay?
But if it’s net, that means the total tax has already been reducted and the ‘total pay’ is the end result?
I believe student finance wants to know the income after taxes, hence why I am not sure if the figure is net and I can just add it in the form or if I have to deduct ‘total tax’ from ‘total pay’ to find out the net pay myself
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Separately, what is the difference between boxes 7 and 8? Another P45 I am looking at has both boxes filled and the salary differs for each. The salary in box 8 is lower than the one in Box 7. When I googled it quickly it says that Box 7 amounts for the full tax year whilst box 8 represents that specific employment alone. However, this wouldn’t be accurate because I only worked for that specific company from the start of the tax year until September, so it wouldn’t make sense for them to account for another employer.
Could anyone advise on these issues please?