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Adjusted Net Income

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Can anyone help, I’m really confused as to how I calculate my adjusted net income and concerned I’ve gone over the threshold for Child Benefit.  I believe it’s gross wage minus pension contributions, but added complication is that I have a company car, which is not salary sacrifice.  Do hypothetically, if I have a salary of £60,000, pension contributions of £6,000 a year, a company car which states a BIK of £330 on my payslip, but I pay £158 + £30 tax, how on earth do I work out net adjusted income, soooo confused


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  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 29 September 2020 at 7:39PM
    See https://www.gov.uk/guidance/adjusted-net-income

    i think it’s gross plus BIK minus pension (the gross amount)
    £60,000 + £3,960 - £6,000 = £57,960.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • unkle
    unkle Posts: 338 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    See here;

    https://www.gov.uk/guidance/adjusted-net-income

    But yes employment benefits such as Co Car will apply. I believe it's the value on your P11D. Or are you saying you get a car allowance of £330 a month?
  • Can’t find my P11D at the moment. Car and Fuel BIK on payslip is states as £330 (this is just in the comments section).  I pay £158 plus £30 tax contribution towards car a month which I pay after tax
  • You cannot deduct salary sacrifice pension contributions.

    For two reasons, firstly you haven't actually contributed anything to the pension, your employer has.  Secondly your P60 will already reflect the reduced taxable pay so deducting them would mean you have double counted them.

    Same goes for net pay contributions, which you do pay, but are already reflected on the P60 taxable pay amount.
  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    MrNeville said:
    Can’t find my P11D at the moment. Car and Fuel BIK on payslip is states as £330 (this is just in the comments section).  I pay £158 plus £30 tax contribution towards car a month which I pay after tax
    I assumed the £330 is the monthly BIK which is how I arrived at £3,960 for the full year,
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
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