Reader's Question: Taxable pay - Money To The Masses

Reader's Question:

What does taxable pay mean on my pay slip?

My Response:

Quite simply it is the your pay that is subject to income tax.

So that is your pay after deductions such as your personal tax free allowance (which is £6,475 for the 2010/11 tax year), pension contributions paid directly out of gross pay and any allowable expenses.

These deductions are non-taxable. Hence why they are deducted from your gross pay to arrive at your taxable pay.

I hope that clears things up

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Reader’s Question: Taxable pay