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Taxable pay vs Total Gross

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    Taxable pay vs Total Gross

    While I know what the difference is between taxable pay and total gross, I want to know which one should be taken into account for calculating how much personal allowance one has left.

    I believe it's the total gross correct?

    #2
    Originally posted by amarkitanis View Post
    While I know what the difference is between taxable pay and total gross, I want to know which one should be taken into account for calculating how much personal allowance one has left.

    I believe it's the total gross correct?
    No, I think you have that the wrong way around. But for the avoidance of doubt perhaps you can expand on what you mean by "taxable pay" and "total gross", and what you believe the difference to be?

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      #3
      If you're thinking if dividends, then it's the grossed up value that counts as taxable income when accounting for the personal allowance and tax rate thresholds. Likewise with salary it's the gross amount.

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        #4
        Originally posted by TheCyclingProgrammer View Post
        If you're thinking if dividends, then it's the grossed up value that counts as taxable income when accounting for the personal allowance and tax rate thresholds. Likewise with salary it's the gross amount.
        "Total gross" can include non-taxable elements (e.g. pension), hence we have "taxable pay". It's not possible to answer usefully without knowing in what context these terms are being used or abused.

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          #5
          Get an accountant. He will save you money.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

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