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• # 107359
• Sun 19 Apr 2015 05:41 PM

Hi can anyone help please I have the new self assessment book but I can't understand where I'm going wrong I'm looking at chapter 2 worked example 2 it says a income from a state pension £85 per week and a income from a private pension of £50 per week in the book it says a taxable income of £135 per week I thought the private pension would need to be grossed up to make the taxable income £147.50. I know paying £99 for the book it can't be wrong so where am I going wrong? 

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• # 107360
• Sun 19 Apr 2015 06:19 PM

Hi Vicky

On page 22 the book says that state retirement pensions are paid gross and private pensions are paid with tax deducted at source.

My view is that as the state pension is paid gross, this does not need grossing up.  With the private pension it doesn't say whether the £50 is gross or net. As they haven't grossed it up in the example, I would take the £50 to be the gross amount.

These  are my thoughts but if anyone else has anything to add, it would no doubt be very much appreciated.

I am also studying Self Assessment but have used a combination of a Distance Learning Course and the ICB book.  I like the number of worked examples and self test questions with the ICB book and these have helped hugely.  The two courses have looked at self assessment from different angles and have been very helpful.

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• # 107361
• Sun 19 Apr 2015 06:19 PM

jand1234 said:

“

Hi Vicky

On page 22 the book says that state retirement pensions are paid gross and private pensions are paid with tax deducted at source.

My view is that as the state pension is paid gross, this does not need grossing up.  With the private pension it doesn't say whether the £50 is gross or net. As they haven't grossed it up in the example, I would take the £50 to be the gross amount.

These  are my thoughts but if anyone else has anything to add, it would no doubt be very much appreciated.

I am also studying Self Assessment but have used a combination of a Distance Learning Course and the ICB book.  I like the number of worked examples and self test questions with the ICB book and these have helped hugely.  The two courses have looked at self assessment from different angles and have been very helpful.

Jan”

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• # 107363
• Sun 19 Apr 2015 07:23 PM

Thank you for your reply, I have only just started studying this book and thought I had understood it wrong as it said this was the income received and in the same example the interest and dividends needed to be grossed up (this was done).

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